Report shows ME investors spent $3.2B on European hotels in 2013

Global hotel consultancy HVS London released figures on European hotel transactions, showing that transactions in Europe reached a value of $10.6 billion in 2013. According to Hotelier Middle East, Middle Eastern buyers have figured heavily in recent global hotel investment, with capital generated from the region representing a massive 30 percent of total volume in 2013, up from 12 percent in 2012 and totaling $3.2 billion, up from $889 million in 2012.

The figures were first released by HVS London on the first day of the International Hotel Investment Forum (IHIF) in Berlin. The report highlighted standout transactions that include Constellation Hotels’ acquisition of the Groupe du Louvre Portfolio (four hotels) from Starwood Capital for $963 million, ADIA’s (Abu Dhabi Investment Authority’s) purchase of 42 Marriott hotels in the UK for $881 million and the purchase of the Malmaison and Hotel du Vin portfolio by private equity firm KSL for $322 million

“The European hotel industry has signaled positive trends throughout 2013," said Report co-author Veronica Waldthausen, an associate at HVS London. "Most markets have seen occupancy and average rates grow with hotel transaction volume reaching its highest point since 2007. Financing for prime assets has become more readily available, both from domestic as well as overseas banks, changing the hotel investment landscape.”

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Hospitality Net reported that transactions of single assets from high-net-worth individuals showed 70 percent growth in 2013 to $1.3 billion, as investors, including those from the Middle East, displayed a growing interest in acquiring key assets throughout Europe. Institutional investors, including sovereign wealth funds, also accounted for approximately 42 percent of portfolio buyers and 19 percent of single asset purchasers.