Following a few years of subdued activity in the region, Central & Eastern Europe (CEE) looks to be heating up as Jones Lang LaSalle’s Hotel & Hospitality team (JLL H&H) reveal that they have acted as the exclusive agents in the sale of eight prime hotel assets in the region in the second half of 2013 - totalling €275 million in value. These deals represent the first group of large corporate hotel transactions since 2010, giving the global real estate advisor an unprecedented 90% market share of a total volume of €305.9 million in 2013.
A highlight of the key deals include;
- The sale of the 232 bedroom Sheraton Krakow to Algonquin on behalf of administrators Grant Thornton for €38 million (€164,000 per key).
- The sale of the 245-room Hilton Sofia on behalf of administrators Grant Thornton to a consortium of local businessmen for €24 million (€98,000 per key).
- The sale of the 206 bedroom Bristol Hotel, Warsaw to a UK based family trust
- The acquisition of the 372-room Intercontinental Hotel, Prague on behalf of BHP (a part of Slovakian bank J&T) from Baupost for €115 million (€309,000 per key).
Daniel Pugh, Vice President at JLL H&H said “The sales process was a long and winding road for all of the transactions and we are happy to have closed the deals before Christmas. We expect the hotels to continue to grow in their local markets and their new owners to benefit from future upside as the CEE markets return to pre-crisis levels.”
Images from top left: Sheraton Krakow, Hilton Sofia, Bristol Hotel Warsaw, Intercontinental Hotel Prague
About Jones Lang LaSalle’s Hotel & Hospitality Group
Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s 300 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US $36 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
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