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14. März 2012 
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60% of total hotel investment volumes in 2011 were transacted as single asset deals
2011 proved to be another active year for both investors and hoteliers in Europe, the Middle East and Africa (EMEA) despite increasing uncertainty surrounding the Euro crisis in the second half of 2011. At year-end, investment volumes across the region totalled €8.1 billion, a 5% increase on 2010 levels according to the Hotel Investment Highlights report by Jones Lang LaSalle Hotels.
Jonathan Hubbard, CEO Northern Europe Jones Lang LaSalle Hotels said, “In 2011, the market saw a flight to quality. Trophy assets in key gateway cities achieved record prices, widening the pricing gap between primary and secondary assets. Major trophy hotels were acquired by Middle Eastern and Asian investors, primarily high-net-worth-individuals (HNWIs) and sovereign wealth funds, despite the high costs per key and the low yields achieved in such investments.”
2011 saw a growth in portfolio transaction volumes, which increased by 16% compared to 2010. This growth was underpinned by the sale of two hotel portfolios, the Mint and the European InterContinental portfolios, which sold for €698 million and €450 million respectively. Christoph Härle, CEO Continental Europe Jones Lang LaSalle Hotels commented: “Despite the marked improved growth in portfolio transactions across the year, the majority of transactions were single asset deals which accounted for 60% of the entire hotel investment volume in 2011. Around 78% of all transactions had a purchase price below €50 million, with only 3% being above €200 million.”
The most liquid market in EMEA was again the UK, with a total transaction volume of €2.9 billion at year end 2011. In second place was France with a transaction volume of €1.1 billion, followed by Germany with a transaction volume of about €800 million.
One of the enduring themes in 2011 was the increasing amount of debt restructuring deals. Many financial institutions, especially in the UK and Ireland, have started to work through their balance sheets and have sold assets to improve their capital positions.
Jonathan Hubbard, CEO Northern Europe Jones Lang LaSalle Hotels said, “In 2011, the market saw a flight to quality. Trophy assets in key gateway cities achieved record prices, widening the pricing gap between primary and secondary assets. Major trophy hotels were acquired by Middle Eastern and Asian investors, primarily high-net-worth-individuals (HNWIs) and sovereign wealth funds, despite the high costs per key and the low yields achieved in such investments.”
2011 saw a growth in portfolio transaction volumes, which increased by 16% compared to 2010. This growth was underpinned by the sale of two hotel portfolios, the Mint and the European InterContinental portfolios, which sold for €698 million and €450 million respectively. Christoph Härle, CEO Continental Europe Jones Lang LaSalle Hotels commented: “Despite the marked improved growth in portfolio transactions across the year, the majority of transactions were single asset deals which accounted for 60% of the entire hotel investment volume in 2011. Around 78% of all transactions had a purchase price below €50 million, with only 3% being above €200 million.”
The most liquid market in EMEA was again the UK, with a total transaction volume of €2.9 billion at year end 2011. In second place was France with a transaction volume of €1.1 billion, followed by Germany with a transaction volume of about €800 million.
One of the enduring themes in 2011 was the increasing amount of debt restructuring deals. Many financial institutions, especially in the UK and Ireland, have started to work through their balance sheets and have sold assets to improve their capital positions.
