Following a few years of subdued activity in the region, Central & Eastern Europe (CEE) looks to be heating up as Jones Lang LaSalle’s Hotel & Hospitality team (JLL H&H) reveal that they have acted as the exclusive agents in the sale of eight prime hotel assets in the region in the second half of 2013 – totalling €275 million in value. These deals represent the first group of large corporate hotel transactions since 2010, giving the global real estate advisor an unprecedented 90 percent market share of a total volume of €305.9 million in 2013.
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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