UK leads Europe in hotel sales volumes
The UK was responsible for more than half the €6.7b-worth (£4.5b) of European hotel portfolio deals sealed in the first half of this year, global research has revealed.
Property agents Jones Lang LaSalle Hotels found the UK had taken 55% (£2.48b) of business in a soaring European market.
London maintained its status as a property hot spot, topping the single-asset hotel transaction league with
€845m-worth (£570m) of business, surpassing 2005's figure of €781m (£528m).
Rob Seabrook, executive vice-president of Jones Lang LaSalle Hotels, said: "So far this year we have seen unprecedented attention on the London market, with high-value transactions including the sales of the Great Eastern hotel for €219m (£148m) and the Marriott Park Lane for €153m (£103m)."
Overall, the €9b (£6.1b) value of European hotel transactions until June this year was ahead of 2005 by €2b (£1.35b). Global transaction activity had reached $41b (£21b) by June, whereas transactions for the whole of 2005 totalled just $45b (£24b).
Arthur de Haast, global chief executive of Jones Lang LaSalle Hotels, said: "Anticipating a slight supply shortage, we had expected to see similar levels to last year, but we certainly did not expect to get close to 2005 levels in just six months."
The increasing volume of hotel transactions was highlighted last week when Ireland's Great Southern Hotels sold seven of its eight properties for a total sum of €265m (£180m), double the price originally expected.
With the combined number of rooms totalling 950, the sale price works out at €275,000 (£186,000) per room.
The hotel group, which is a subsidiary of Dublin Airport Authority, lost €5m (£3.4m) in turnover last year.
By Tom Vaughan
