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With three quarters of the year now completed, 2013 continues on track to record the highest level of European hotel sales since 2007, although with momentum trailing off from the very strong levels of activity seen in Q4 2012 and particularly Q1 2013 (with reduced recent activity being due to a relative shortage of properties currently on the market).

Total sales for 2013 are expected to surpass the €.7 billion recorded in 2011, although still being far below the €.15 billion to €.20 billion recorded in each of the boom years of 2005, 2006 and 2007, when the easy availability of substantial debt finance led to an unprecedented level of major portfolio transactions.

In the first nine months of 2013, hotel sales (above €.7.5 million) in Europe passed €.6.5 billion in total (€.3 billion in portfolios plus €.3.5 billion in single assets), already €.1 billion ahead of the €.5.5 billion recorded for the entire year in 2012.

However, this is largely attributable to the very high level of transactions that closed in Q1 of 2013, with over €.4 billion of deals closing between January and March this year, almost two-thirds of all transactions recorded year-to-date. This Q1 activity was dominated by over €.2.5 billion of portfolio sales, including Constellation Hotels.f acquisition of four Group du Louvre properties in France, ADIA's purchase of 42 Marriott hotels in the UK, Starwood Capital's purchase of 22 Principal Hayley hotels in the UK and Fattal's acquisition of 24 QMH hotels in Germany.


Notable sales in Q3 2013 included a portfolio of four Club Med properties sold by Gecina to Assur du Crédit Mutuel, Blackstone's acquisition of the Concorde Opéra Paris from Starwood Capital and Dorchester Group's acquisition from Starman of the Hotel Eden in Rome for a rumoured .€105 million.

Due to the relative shortage of stock currently available for acquisition, Q4 in 2013 is expected to be well below the level of transactions seen in Q4 2012, when almost .€2 billion of hotel sales closed in the final quarter.

About HVS

HVS has provided consulting services and solutions for thousands of clients in all 50 states and more than 60 foreign countries for hotels, mixed-use, shared ownership and leisure assets. The firm also orchestrates major industry conferences and networking opportunities in various regions of the world. HVS is the industry's primary source of hotel sales data, research, market studies and educational information relating to the hospitality industry.

Contact: Tim Smith, Director HVS London

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