Hotel Online
News for the Hospitality Executive


EMEA Hotel Investment Market During Q1 2012 Shows Strong Activity
in London and Paris; Overall EMEA Investment Volume 39 % Lower than Q1 2011
According to Jones Lang LaSalle Hotels

London, 13th April 2012 - In the first quarter of 2012, hotel investment volumes in Europe, Middle East and Africa (EMEA) totalled €1.5 billion, a 39 % decline compared to Q1 2011. However, volumes in Q1 2011 were distorted by approximately €1billion from three significant transactions (Marriott Champs Elysées, Ritz Carlton Moscow and a large Accor European portfolio), so stripping these out, volumes increased by 7% compared to the same period last year. Single asset deals accounted for 74% of transactions.

Investment activity remains strong in Paris and London with a combined investment total of €645 million in 14 deals and with continued trading, growth investor demand is expected to continue to be high. Christoph Härle, CEO Continental Europe Jones Lang LaSalle Hotels said: "Investment sentiment remains robust for quality assets in key cities, however, this sentiment could soften over the next months if growth in hotel performance continues to slow across some of the key European hotel markets". At year-to-date February 2012 hoteliers posted a fall in revenue per available room (RevPAR) in some cities, such as Munich (-7.7 %), Düsseldorf (-11.5 %), Amsterdam (-9.7 %), Zurich (-10 %) or Copenhagen (-2.6 %).
The UK remained the most liquid market in EMEA during Q1 2012 with total hotel transaction volumes reaching €784 million, 52% of total EMEA transaction volumes. Activity was primarily concentrated on London with 11 hotel sales completing including the sale of the 4-star 129 room hotel Kingsley Thistle for about €51 million to a private client of Citi Bank.

Jon Hubbard, CEO Northern Europe Jones Lang LaSalle Hotels said: "London was once again one of the most active hotel investment markets in Europe and we anticipate further strong interest across the market, including for trophy assets. The pricing gap between regional UK and London hotels is widening and, while trading in many of the regions remains weak, we do not anticipate a significant uptick in transactional activity in those markets in the short to medium term, except where driven by distress"

In France, hotel transaction volume totalled €252 million in Q1 2012, 17 % of total EMEA transaction volumes. Activity was driven by three major hotel sales in Paris including the 4-star 617 room Pullman Paris Rive Gauche which was sold by Accor to French property company Bouygues Immobilier for €77 million.

In Germany, total hotel transaction volume amounted to about €70 million, 5 % of total EMEA transaction volumes. Significant transactions included the sale of a portfolio of 3 Pentahotels in Kassel, Braunschweig and Eisenach to the tenant HPI Germany Hotelbesitz GmbH (Hong Kong Chinese family owned group) and the acquisition of the Suite Novotel Hamburg City by German fund manager Deka Immobilien.

While the market remains very active negotiating deals, driven by the need for existing investment structures to be refinanced and that of new equity investors to place capital, the continued lack of debt and/or high margins from those active lending banks, make transactions difficult to complete. Larger transactions, involving multiple lenders are particularly difficult to execute, although appetite remains for quality stock. However, bank restructuring activities are increasing which will help drive investment volumes. Therefore, the outlook for 2012 remains much the same as 2011, with a total hotel transaction volume of around €8 billion forecast."
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2010, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on $4.1 billion worth of transactions globally. In addition, advisory and valuation services were provided on over 1,000 assignments. The global team comprises over 225 hotel specialists, operating from 39 offices in 20 countries. The firm's advice is supported by a dedicated global research team, which produced 70 publications in 2010 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). 


Natasha Southwick
+44 (0)20 7399 5538

Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here  

To Learn More About Your News Being Published on Hotel-Online Inquire Here

Also See: Single Asset Deals Accounted for 60% of Total Hotel Investment Volumes in 2011 Across EMEA According to Jones Lang LaSalle Hotels' Hotel Investment Highlights Report / March 2012

New York City Sets Record with $3.5 Billion in Hotel Transactions in 2011, a 150% Increase Over 2010; Jones Lang LaSalle Hotels Predicts New York Deal Volume Will Continue to Lead U.S. Cities in 2012 / January 2012

Global Hotel Transaction Volume Forecasted to Hold Steady in 2012 with Worldwide Levels to Once Again Reach $30 billion According to Jones Lang LaSalle Hotels Annual Hotel Investment Outlook 2012 Report / January 2012

Mark Wynne-Smith to Become CEO for Jones Lang LaSalle Hotels While Arthur de Haast Steps Up to Chairman / December 2011

Global Hotel Investors’ Appetite to Buy Rises to 18-month High, According to Jones Lang LaSalle Hotels Survey; Top five cities for acquisitions include Stockholm, Copenhagen, Chicago, Milan and San Francisco / November 2011

New Buying Audience Emerges as REITs Pull Back on the Throttle for Hotel Assets; Jones Lang LaSalle Hotels says sellers' window is still open as growth in hotel room rates are expected to outpace inflation / September 2011

Jones Lang LaSalle Hotels Study, Lodging Industry in Numbers – Brazil 2011, Reveals Double-Digit Performance Growth for Brazilian Hotels for Second Consecutive Year / August 2011

Jones Lang LaSalle Hotels Forecasts Global Hotel Investment Volumes to Reach $34.8 billion in 2011; The Americas Registered a 187% Year-on-Year Upsurge with Transactions Totalling $7.4 billion / July 2011

U.S. Hotel Transaction Volume Reaches $4.9 Billion Through May, Triple the Volume for Same Period Last Year Reports Jones Lang LaSalle Hotels; Investors' 'buy' intentions are at six-year high / June 2011

Jones Lang LaSalle Hotels Reports $24.3 billion in Global Hotel Sales During 2010 as Investors Get Back in the Game; Expects Deal Volume to Rise up Another 15-25% Across the Globe in 2011 / January 2011

After the Financial Challenges of 2009, Jones Lang LaSalle Hotels Forecasts a 30 to 40 Percent Increase in Global Hotel Deals; Worldwide Transaction Levels Could Reach $28 to $30 billion in 2011 / November 2010

Jones Lang LaSalle Hotels Arranges the Sale of the Laguna Cliffs Marriott Resort & Spa / October 2007

Jones Lang LaSalle Hotels Select Service Division Closes Radisson Fort Worth North Hotel / January 2007

To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch

Home | Welcome | Hospitality News
| Industry Resources

Please contact Hotel.Online with your comments and suggestions.