Hotel sales set to rebound
The number of hotel sales is expected to increase in 2003 following a decline this year, according to consultant HVS International.
The HVS European Hotel Transactions 2002 market review of the UK reports that the number of large single hotel sales in London fell from seven in 2001 to just four this year.
The most significant sale, by price per room, was that of the 53-bedroom 47 Park Street hotel to Marriott and the Orion European Real Estate fund for £27.4m. Another major deal was the sale by Land Securities of a majority stake in the 450-bedroom London Hilton on Park Lane to property group London & Regional, for about £158m.
Notable group deals included:
- Thistle's sale-and-leaseback of 37 hotels to property company Orb Estates for £605.8m.
- Hilton's £311m sale-and-leaseback of 10 hotels to property group Rotch, hotel investment company Farnsworth Group and the Bank of Scotland.
- Jarvis Hotels' £151m sale-and-leaseback of nine hotels to venture capital firm Lioncourt Capital.
HVS said that the hotel investment market would "improve substantially" in 2003, with further sale-and-leaseback deals expected.