Four months ago, Hong-Kong based Kai Yuan Holdings expressed interest in buying the Paris Marriott Hotel Champs-Elysees for an estimated $468 million. Today that deal has officially closed.
According to Property EU, JLL's Hotels & Hospitality Group acted as the advisor of the transaction for the seller. The 192-room hotel was sold for $439 million, and is one of the only a few hotels located on the Avenue des Champs-Elysées in Paris.
"This sale confirms the increasing interest from Asian capital for assets in Paris and the attractiveness of European key gateway cities for high-profile real estate investments," Nihat Ercan, EVP of JLL’s Hotels & Hospitality Group in Singapore, told Property EU.
Earlier this year, JLL predicted that hotel volume would increase in Europe, the Middle East and Africa by over 20 percent throughout 2014. This level of growth could be a possibility, with JLL securing over $1.2 billion in deals this year in Paris alone.
This high profile Paris hotel acquisition by Kai Yuan is indicative of this, as well as the increased interest in Western hotel developments from both Chinese investors and travelers. David Sadigh, founder and CEO of Digital Luxury Group, told The Malay Mail that this investment could be a result of the growing middle class and China's recent encounters with Western brands in their own country, prompting them to be interested in them overseas as well.
According to the Malay Mail, China (at 9 percent) is the second largest market seeking out luxury hotels worldwide (the UK placed first at 10 percent). Online interest from Chinese travelers in hotels rose 39 percent from last year.