FEATURE
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2018 HOTEL TRANSACTION MARKET
2018 Hotel transaction market
Last month Qatari hospitality firm Katara Hospitality acquired the iconic Grosvenor House hotel on Park
Lane in London. The fee for the almost 500-key hotel was undisclosed, but it is expected to be the most
expensive single asset transaction of the year. LEWIS CATCHPOLE reviews some of the biggest deals
of 2018 and talks to HVS chairman Charles Human about the current state of the transaction market
I
n 2018 the UK hotel sector continued to after it fell into administration in 2015.
attract strong investor interest whenever Opened in 1929 and operated by Marriott
anything was placed onto the market, International under the JW Marriott brand,
particularly in London, with hospitality the hotel is a five-star hotel that offers
consulting firm HVS citing £5.2bn-worth of 496 guest rooms, extensive facilities
sales in the last 12 months of trading alone. including five-star amenities, a fitness
Transaction activity over those past 12 centre and 31 meeting rooms.
Katara Hospitality said its vision is
months has included both portfolio and single
asset deals such as the sale of Principal’s 14 to build a portfolio of “leading hotels in
hotels for £750m and the 76-hotel deal by key destinations around the world” and
Travelodge worth £246m. Overseas buyers Grosvenor House is the “ideal opportunity
were one of the main drivers for the growth to expand the company’s footprint into the
accounting for 51% of transactions, amounting vibrant and exciting London market”.
to £1.6b during the first half of 2018.
The top five most expensive single
Charles Human
2) Hilton Kensington, bought by Cola
Holdings for £260m (£431,000 per room)
asset hotel sales this year: Authority’s hotel unit, has acquired the 1) Grosvenor House, London Mayfair JW Marriott Grosvenor House for an Bought by Katara Hospitality for undisclosed undisclosed fee. The deal comes just company entered administration, Cola
(valuation around the £550m it was acquired over a year after the hotel was sold Holdings acquired the Hilton hotel for
for in 2017) to the Ashkenazy Acquisition Corp for £260m. The trophy asset of Tchenguiz’s
£550m. The company acquired the hotel 10 strong portfolio, the Hilton Kensington,
Katara Hospitality, Qatar Investment
After Vincent Tchenguiz’s Consensus
features 603 rooms and suites including
the presidential suite offers a balcony,
kitchenette, dining area, and West London
views. Tchenguiz bought the hotels in 2002
for £335.7m and leased them back to Hilton,
which initially retained a 40% stake in the
properties. In 2006, Hilton sold Tchenguiz
the rest of the interest under an agreement
that would see the operator lease them
until 2029.
3) Beaumont, bought by Barclay Bros for
£130m (£1,780,000 per room)
Amongst much competition over the
past few months, Grosvenor Estates finally
selected The Barclay brothers, via their
Ellerman Hotel Company vehicle, who
Grosvenor House, London Mayfair
24
www.hotelowner.co.uk
already own The Ritz London. A five-star
December 2018