Vienna`s Largest Hotel Transaction - Hilton “Am Stadpark” Sold

Jones Lang LaSalle Hotels is pleased to announce the sale of the Hilton Vienna to the local Viennese developer, Soravia Bauträger GmbH. The joint owners, Swiss™tel`s subsidiary (Sodereal Holdings SA) and the pension fund of the SAir Group, sold the hotel as part of the ongoing restructuring of the SAir Group`s activities and follows the sale of Swiss™tel to Raffles earlier this year. The long term lease agreement for the Hilton Hotel has not been affected by this deal.

In addition to the 585-room hotel, the acquisition included some 4,300m? of office space, 1,200m? of retail space and extensive car parking. Due to the hotel`s prime location adjoining the Stadtpark in the city centre, Nick Marsh, Executive Vice President at Jones Lang LaSalle Hotels stated “the complex attracted significant investor interest stimulated by the hotel`s strategic location and large size which offers exciting development prospects”.

He adds “the transaction is the first major hotel sale since Jones Lang LaSalle Hotels sold the Crowne Plaza in December 1999 for €26.2 million and illustrates the continued strong interest in Vienna`s short and medium term prospects.”

The Vienna hotel market improved its performance in 2000 with quality hotel occupancy levels reaching 71.9%, in their fifth year of growth. According to the recently release Digest Europe, the increasing demand levels have been driven by the corporate and congress sectors, combined with the restricted supply growth. However, room rates were unable to grow above inflation reaching ATS1,679 during the year, up 1.2% on 1999.

Mr Marsh concludes that the prospects over the medium term look promising for Vienna`s hotel market. “The office market, an indicator for the city`s economy and subsequently for the hotel market, has experienced a record year in 2000, with a vacancy rate of 1.9% and the outlook for 2001 is positive”. He adds “as Austria`s political isolation is over, hotel performance should be able to develop further.