for Jones Lang LaSalle Hotels, said: “The average single-asset transaction size jumped to $84m during the first five months of 2011, doubling on the prior-year period. The average price per key of single assets that transacted during the period increased 27% to top $234,000.” Reits continued to lead the
deals market, accounting for a 61% of single asset transaction volume, followed by private equity investors, the second most acquisitive group, representing 25% of purchases by volume. “We are seeing a striking
turnaround in the market for hotel transactions. Building on improving lodging fundamentals which gained strength last year, the volume of capital flowing to hotel real estate has ignited as acquisitive investors re-entered the market in full force, leading to a 170% increase in transaction levels,” said Arthur Adler, MD and CEO-Americas for Jones Lang LaSalle Hotels. The report came as the company’s Hotel Investor Sentiment Survey reported that that investors’ ‘buy’ sentiment reached a six-year high in the US, with 59% of respondents indicating that their primary investment intention over the next six months was to acquire assets. “Based on the pace recorded
thus far in 2011, we are confident that transaction volume forecast of $13bn for full-year 2011 will be met or exceeded as momentum in the market further accelerates,” said Adler. The transactions market in
Paris remained steady during the downturn, much as it did in London, with seemingly recession- proof trading encouraging investors to seek a safe haven for their money, so news that prices were expected to reach new highs
was good news for those who beat out the competition to acquire assets in the city, but not an accurate barometer for the rest of the sector.
HA Perspective: Brokers telling you the transaction market is strong is akin to a used car salesman telling you that he is offering you the deal of a lifetime. In the (misquoted) words of Mandy Rice-Davies: “Well he would say that, wouldn’t he”. It is certainly true that there is
more optimism in the industry. At the New York University hospitality investment conference in June there was a clear sense of optimism and expectations that 2011 would continue to see a bounce back from trading drops post-Lehmans. But credit, despite what
relationship lenders at banks tell you, remains desperately tight. Given the scale of the financial disaster credit is likely to remain tight for some time, a situation which any bank losses thanks to the latest Eurozone problems is not going to help. Until credit comes back, the transaction market will remain subdued. We are many months, probably a few years, before lending levels recover sufficiently to enable a strong transaction market.
Adagio builds Europe estate
Adagio, the joint venture between Accor Hotels and the Pierre & Vacances Center Parcs Group, has acquired hotel management chain Citéa for an undisclosed fee, taking its estate to 84 residences.
The group, which has aparthotels
in France, Belgium, Germany, Austria, Italy and Switzerland, said that it was focused primarily on Europe, but would move into Russia and the Middle East. Adagio said that the deal, which
takes it to 10,000 apartments, made it the European market leader in urban tourism residences, with sites under Adagio’s name generating E160m. By 2015, the group plans to manage almost 130 residences and generate E330m. Citéa operates 49 aparthotels in
the economy segment on behalf of Pierre & Vacances, Lamy and other third-party investors. Under the terms of the deal, Pierre & Vacances Center Parcs Group acquired the remaining 50% of Citéa which it did not already own from Lamy, then sold Citéa to Adagio. Adagio is Pierre & Vacances
Center Parcs’ fastest-growing brand, having been set up in 2007 by a joint venture between Pierre & Vacances Center Parcs and Accor to operate and develop a European network of aparthotels. Both Adagio and Citéa properties will be put under the Adagio brand, but, the group said, a new brand label would differentiate the Citéa properties. The joint venture identified increasing international mobility and rising demand in business and leisure travel as the driving forces for the development of the aparthotel sector. Accor has other interests in the
aparthotel sector, including its Suites Novotel brand, which has 28 properties offering a two-star medium stay product and Studio 6, an extension of its Motel 6 brand in the US and Canada, which has seen performance suffer during the downturn and has been the subject of rumours that the group was planning its sale. News of the deal came as Pierre & Vacances Center Parcs
reported half-year results, which saw like-for-like turnover increase by 14.1% to E653.1m. At the Pierre & Vacances Tourisme Europe division, city residences saw turnover growth of more than 10% (excluding new residences) offsetting the effect of the decline in the group’s mountain offering. Looking to the summer season,
for Pierre & Vacances Tourisme Europe, reservations were up on the year, driven by seaside destinations, with a slight drop in the core summer period of July to August, due to the policy of reducing early booking offers for the high summer season in favour of occupancy. The group is currently
overhauling its operations, with the goal of an additional tourism turnover of E100m and a reduction in costs by E65m (including E15m of reduction in rents) by 2013. For the joint venture, taking
Citéa entirely into its stable gives it greater control over its future destiny, in addition to greatly increasing the visibility of the Adagio brand in Europe and now, it hopes, further afield. For both joint venture partners, this allows them to reduce the costs of expansion and brand-building, which, for Accor in particular, is in line with its current strategy. The expanded brand now faces competition from the likes of Ascott, which announced a new site in Paris and is planning to grow in Europe, looking at key markets such as Paris, London and the major cities in Germany.
WWW.SLEEPERMAGAZINE.COM SEPTEMBER / OCTOBER 2011 149
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196