MONTH IN REVIEW
MONTH IN REVIEW
www.hotelowner.co.uk
START: THE MONTH’S NEWS BEGAN HERE
HOTELS
European hotel
transaction levels
down in 2018
European hotel transaction volumes
reached €18.6bn (£15.9bn) in 2018,
a decrease of 14% on the previous
year, but still the fifth highest level
recorded, according to the annual
‘European Hotel Transactions’ report
by HVS.
A total of 655 properties, averaging
156 rooms, changed hands in 2018 with
the average price per key growing by
8% in 2018, reflecting the quality of
the hotels that were sold, as well as a
growth in values.
The year saw single asset transaction
volumes fall 23% on 2017 levels to a
new value of €9.5bn (£8.1), representing
51% of the total transaction volume.
Sales included 271 individual hotels
amounting to over 45,000 rooms.
Portfolio activity decreased on the
previous year by just 3% to €9bn
(£7.7bn), 49% of the total volume, with
58 transactions comprising over 380
hotels and over 56,000 rooms.
Reduced activity from Asian and
European buyers was the main reason
for the decrease, with high net worth
individuals in particular, decreasing
their investment in hotels in 2018 to
€116m (£99m), compared with €554m
(£476m) in 2017.
However, the group said the UK
confirmed its “leading role” within
Europe, reaching transaction volumes
of €6.2bn (£5.3bn) in 2018, up 14% on
the previous year’s €5.5bn (£4.7bn).
Nicolas Auer, analyst with HVS
Hodges Ward Elliott, said: “The
European hotel investment market
continues to show rising popularity
as an alternative asset class due to
its strong yields. While 2018 may
have seen an overall decrease in
transactions it was compared to an
exceptional 2017.”
6
www.hotelowner.co.uk
ACCOLADES
Marriott
recognised in
Times’ Best
Companies 2019
Marriott International has been
recognised in the Sunday Times’ ‘25
Best Big Companies to Work For’ list,
achieving 6th place.
The hotel brand was recognised for
its ethos of taking care of its associates
as well as for the company’s continued
efforts to recognise and reward their
achievements, with associates feeling
they make a “valuable contribution” to
the company’s success.
The listing also highlighted the range
of training experiences offered by
Marriott International, with associates
valuing the variety of learning and
development opportunities for both
personal and professional growth.
Francisca Martinez, chief HR officer
at Marriott International Europe,
said: “It is a great honour for Marriott
International to have been placed
6th in this year’s Sunday Times ‘Best
Companies to Work For’ awards.
“This is the 12th time that The
Sunday Times has recognised Marriott
International and is a true testament
to our timeless commitment of putting
people first.”
The European hotel
investment market
continues to show
rising popularity as an
alternative asset class due
to its strong yields
Nicolas Auer, analyst,
HVS Hodges Ward Elliott
1
2
3
4
5
STAT OF THE MONTH
100
That’s how many hotels
Travelodge is planning to open in
the next five years after seeing its
turnaround plan lead to an 8.8%
rise in revenues
HOTEL BRANDS
Accor launches
new midscale
brand Tribe
AccorHotels has launched its new
lifestyle brand Tribe, set in the
midscale segment.
The brand currently consists of one
126-bedrooms hotel near the botanic
garden at Kings Park, Perth, Australia,
and 10 other openings are already
scheduled to take place by 2022 in
Europe and Asia Pacific - totaling more
than 1,700 rooms.
Properties will be centered around
a “welcoming lobby” area, with rooms
that offer guests the “utmost comfort
and latest technologies”.
Accor said the brand has also been
designed to appeal to owners and
investors, with a product that “guarantees
superior financial returns thanks to
improved customer perception based on
economical spaces and services”.
Gaurav Bhushan, chief development
officer at Accor, said: “The pipeline
of over 50 hotels currently being
negotiated for the coming years leads
us to believe that the Tribe brand will
achieve significant growth all over the
world including in gateway locations
such as Paris, London, Singapore, Dubai
Bangkok. It will be making its debut in
150 international destinations by 2030.”
April 2019