The 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 Fattal Group’s Leonardo Hotels led a consortium of international investors to acquire Queens Moat Houses (Germany) Holding GmbH.
“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,” Jonathan Hubbard, CEO Northern Europe for Jones Lang LaSalle’s Hotels and 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,” Christoph Härle, CEO Continental Europe for Jones Lang LaSalle’s Hotels and Hospitality Group said.