In Europe, investments in the hotel sector are decreasing. According to the recent analysis conducted by Jones Lang LaSalle Hotels at the end of 2001 the total volume invested was approximately €1.9 billion below the peak of 2000; decline partly due to a market characterized by investments in real estate portfolios rather than in individual assets.
In Europe, the events of 9/11 would not have shut down the market as they did in the United States. In fact, a large part of the investments, which were at an advanced stage of negotiation on 11 September, were completed despite the waning market confidence. So much so that 38% of all investments in single properties were concluded during the last quarter of 2001.
The highest transacted amount in 2001 refers to the sale of the Hotel Arts in Barcelona for a total of approximately €285 million (€626,344 per room). Followed by the sales of the Hotel Cumberland in London (€238 million), part of the disposal of the Granada group, and those of the Maritime Pro Arte in Berlin and the Nikko in Paris, both concluded for a value of more than €100 million.
Among the positive signs of the European hotel markets is certainly the growing autonomy of the investment market, due both to the implementation of the EMU and to the growing diversification in the type of investors currently active on the market. In 2001, the strongest investors were private individuals, who represented 41% of the total volume of investments transacted, thus including investors such as: Colony Capital, Tweed Investments and Nomura. In second place, with around 26%, are hotel managers (down from the 40.1% recorded in 2000). Institutional investors continue to increase their presence on the market, representing 13% of the total volume invested in European hotel properties.
source: Il Sole 24 Ore
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