The value of hotel property deals in Europe fell by 14% in 2001, but the market will start to recover in 2002, says hotel investment advisor Jones Lang LaSalle
The value of hotel property deals in Europe fell by 14% in 2001, but the market will start to recover in 2002, says hotel investment advisor Jones Lang LaSalle. According to its latest Digest Europe report, the value of single hotel deals in Europe fell from £1.4b in 2000 to £1.2b in 2001. Most deals completed during the year were sales of hotel groups rather than single properties. European investors dominated the European hotel market last year in place of American investors, says the report, although the events of 11 September did not have a huge impact on the market. In fact, the report says, 38% of all sales of single hotels took place in the last quarter of 2001. In London, the value of single hotel deals fell by 13.4% to £219m.
But Arthur de Haast, managing director for Europe at Jones Lang LaSalle Hotels, was confident of a rebound in the market in the first half of 2002 and cited German investment funds and venture capitalists as likely investors. Nick Marsh, executive vice president, said investors looking to make money should be targeting markets hardest hit by 11 September, such as London, Paris and Amsterdam. Following 11 September many hotel owners in London were reluctant to sell because of poor trading in the final quarter of the year. As a result several hotels were removed from the market with the only single hotel to be sold following the terrorist attack being the Berners Hotel for £51m. The reports adds that several sale-and-leaseback deals can be expected in 2002.