CEE hotel transactions heat up as a strong Q4 in 2013 sets the scene for an elevation in market activity in 2014
A highlight of the key deals include;
- The sale of the 232 bedroom Sheraton Krakow to Algonquin on behalf of administrators Grant Thornton for €38 million (€164,000 per key).
- The sale of the 245-room Hilton Sofia on behalf of administrators Grant Thornton to a consortium of local businessmen for €24 million (€98,000 per key).
- The sale of the 206 bedroom Bristol Hotel, Warsaw to a UK based family trust
- The acquisition of the 372-room Intercontinental Hotel, Prague on behalf of BHP (a part of Slovakian bank J&T) from Baupost for €115 million (€309,000 per key).
Angus Wade, Executive Vice President at JLL H&H said – "These sales represent the first large corporate hotel transactions in the CEE region for approximately 3 years. Increased interest in this region has been triggered by a mismatch in pricing with core Western European markets and we expect 2014 to be an interesting year for investors looking for secure investments in CEE."
Daniel Pugh, Vice President at JLL H&H said "The sales process was a long and winding road for all of the transactions and we are happy to have closed the deals before Christmas. We expect the hotels to continue to grow in their local markets and their new owners to benefit from future upside as the CEE markets return to pre-crisis levels."
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About JLL's Hotels & Hospitality Group
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. AFortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.co.uk