Appetite for quality hotel assets in Stockholm continues into 2013

Investor appetite for Swedish hotel assets is expected to continue as we look to 2013 according to Jones Lang LaSalle Hotels' latest Hotel Intelligence report for Sweden. A stable economy, as a result of the country quickly rebounding after the economic crisis in 2009, and robust operating conditions in Stockholm has resulted in investment interest increasing and hotel assets in Stockholm showing one of the lowest yield requirements in Europe, at 5.9%.Transaction activity in 2012 at year-to-date June 2012 has amounted to just below $100 million. A total of four hotels changed owners, the largest transaction being the 4-star, 128 bedroom Renaissance Malmö, which was sold for €45 million to Fastighets AB Balder.

Jon Hubbard, CEO UK and Northern Europe Jones Lang LaSalle Hotels commented: "The hotel investment market in Sweden is dominated by domestic investors and only a limited number of foreign acquisitions have been witnessed in recent years. Despite the presence of a number of foreign operators, Sweden is likely to stay predominantly in the hands of Nordic brands, which are well known to domestic visitors, who continue to account for the Lion's share of demand. This type of asset will continue to attract interest from domestic investors; however, they may struggle to raise the interest of international capital, which tends to focus on international branded hotels."