Jones Lang LaSalle Hotels was involved with all four deals short-listed for the single-asset “Deal of the Year” award at Berlin`s International Hotel Investment Forum. Those transactions included:
* Strategic Hotel Capital`s purchase of the 277-room Marriott Hamburg Hotel, where acquisition advice was provided by Jones Lang LaSalle Hotels.
* The sale of The Caledonian in Edinburgh, Scotland, which Jones Lang LaSalle Hotels arranged on behalf of Queens Moat Houses plc to purchaser Hilton Hotels. We achieved the highest price at €71.5 million for a single-asset deal in regional UK, on an initial yield of 7.4%.
* The sale of the Hyatt Charles De Gaulle in Paris, which Jones Lang LaSalle Hotels arranged on behalf of TOA Invest France SARL to Hospitality Europe. This deal was the largest single asset sale recorded in France during 2000 at €50.3 million, representing an initial yield of 9.0%.
* Hospitality Europe`s purchase of the 314-room Renaissance Hotel in Prague, for which Jones Lang LaSalle Hotels provided valuation advice to the buyer. In a market highly sought after, this deal was the only one to come to fruition in 2000 and was concluded at €65.2 million.
“This level of involvement demonstrates Jones Lang LaSalle Hotels` strong position in the European market” stated Arthur de Haast, Managing Director Europe at Jones Lang LaSalle Hotels. “It also highlights our breadth of skills, from investment sales to operational consulting, valuation, asset management and corporate finance. Our European team has expanded over the last three years from 20 to 40 professionals, enabling us to expand and deepen our links to owners, operators, developers and financiers. We are now very well positioned to offer our clients innovative real estate financing solutions across Europe and globally.”
The Marriott Hamburg transaction won the “Deal of the Year” award for which Jones Lang LaSalle Hotels advised Chicago-based Strategic Hotel Capital (SHC) on the purchase of this four-star, 277-room property for €48.5 million (US$45.1 million). Bilia AB, a subsidiary of Volvo, the well-known automobile company, sold the property.
According to Christoph Härle, Senior Vice President at Jones Lang LaSalle Hotels, who arranged the acquisition, the June 15, transaction represented an initial yield of 8% and a leveraged IRR of 17%.
“In this off-market transaction, SHC was able to resolve barriers to the sale by restructuring the complex ground and operating leases in order to unlock the value potential. The property is operated subject to a long-term management agreement with Marriott,” said Härle.