In 1996, 27 major European hotels changed hands for $1.2bn, according to consultants HVS International.
In addition, there were six big corporate or portfolio deals, for a total of $ 6.9bn, some This underlines the increased activity of the larger international hotel buyers, says HVS.
As in the previous year, the vast majority of 1996’s turnover was in the UK, reflecting the buoyancy and liquidity of that market. Granada’s takeover of the Forte group was the most significant corporate transaction. Subsequently, Granada sold its White Hart Hotels as a package to Regal and put all 16 of its Exclusive ones on the market. Only one, the Hyde Park, was bought (for £85m by Mandarin Oriental) in 1996, but in 1997 the Westburys in London and New York were bought. HVS anticipate that the year should see further high-profile sales.
The French and German hotel markets continued illiquid in 1996. In Germany there was only one major transaction, the sale of the Scandic Crown in Ettlingen by Skanska; investors were wary of purchasing in a depressed market. In France, there were large portfolios of over-valued assets failing to find buyers. The highest-profile deal was the purchase of the George V in Paris, by Prince Alwaleed for £104m from Granada.
However, HVL are more upbeat about the prospects for 1997 in these countries. Germany’s economy is expected to strengthen, and a weakening franc will help aid recovery in France. In Spain, better occupancy rates and rising hotel values should lead to more transactions, say HVS.
1996 European Hotel Transactions
ALIGN=”JUSTIFY”>(excludes portfolio sales)
|
Location |
No of hotels |
Estimated price |
|
UK |
ALIGN=”CENTER”>19 |
ALIGN=”CENTER”>$848.6 |
|
France |
ALIGN=”CENTER”>3 |
ALIGN=”CENTER”>$226.2* |
|
Spain |
ALIGN=”CENTER”>1 |
ALIGN=”CENTER”>$104m |
|
Portugal |
ALIGN=”CENTER”>1 |
ALIGN=”CENTER”>$30m |
|
Italy |
ALIGN=”CENTER”>1 |
ALIGN=”CENTER”>n/a |
|
Germany |
ALIGN=”CENTER”>1 |
ALIGN=”CENTER”>$10.6m |
|
Hungary |
ALIGN=”CENTER”>1 |
ALIGN=”CENTER”>$9.6m |
*price for one transaction n/a
