High Levels Of Investment Activity Suggest That Italy Is Finally Open For Business - Jones Lang LaSalle Hotels Releases Digest Europe 2003
LONDON, May 09, 2003 -- Italy achieved the second highest volume of single-asset sales (after the UK) of all European countries monitored in 2002 by Jones Lang LaSalle Hotels' latest European Digest. This is despite the inherently limited liquidity of the Italian hotel investment market, with few reported single-asset transactions exceeding €10 million (approximately US$11.5 million) taking place in any year of the last decade.
"International investment has previously been restrained by many barriers, including the limited range of investment vehicles and the nature of a market that is dominated by family-run businesses, resulting in a dearth of suitable hotels for sale. However, we believe that as international activity increases in Italian office and retail markets, and bank finance becomes more readily available, investment activity should increase significantly," says Roberto Galano, Senior Vice President, Jones Lang LaSalle Hotels.
Of the four transactions that took place in 2002, three involved UNA Hotels and Resorts, a national chain that is expanding rapidly. The other sale, of the Four Seasons Hotel in Milan, was completed by a European private investment group, which paid a record price per key reflecting the exceptional quality of the asset, despite the prevailing economic climate.
In the short term, a further boost to investment activity should come from closed-end real estate funds. By comparing the level of penetration of these financial instruments in Italy with Germany and France, the potential market for this kind of investment appears to be vast. As a result, more sustained hotel investing activity is expected in the future. The possibility of further transactions in 2003 will be assisted by the availability of more high-quality assets from the CIGA and Le Méridien portfolios.
Jones Lang LaSalle Hotels, the world's leading hotel investment services group, provides clients with value-added investment opportunities and advice. Its recent two-year success story includes the sale of 13,994 hotel rooms to the value of US$1.4 billion in 48 cities and advisory expertise for 173,021 rooms to the value of US$32.6 billion across 343 cities. Jones Lang LaSalle Hotels' services include transactions, mergers and acquisitions, financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment and selection and industry research. Jones Lang LaSalle