The omens for 2013 are not looking good for mid-market hotel groups hoping to sell their diminishing assets.
The poor prospects come after several groups made failed attempts at various times last year to sell hotels. Deloitte says only £300m worth of deals were struck in the second half of 2012, down from about £1bn in the first half and about £2.5bn in the second half of 2011. Patron Capital, the private equity group behind the rebranding of Jarvis Hotel as Mercure, sees “some opportunity” to buy depending on price. Jones Lang LaSalle blamed said some of the drag on deals on the number of “stakeholders” that had to be consulted before transactions were completed.
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