MONTH IN REVIEW
MONTH IN REVIEW
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HOTEL SALES INVESTMENT ACQUISITIONS
The London Elizabeth Hotel in the
Lancaster Gate area of London has
been brought to market with a guide
price of £42.5m. European hotel real estate investment
volumes reached €22.9bn (£19.9bn) in
the year to Q3 2018, representing a 3%
increase year-on-year.
According to the latest data from
global real estate advisor CBRE, the
total real estate investment volumes for
all sectors in Europe was flat compared
with the same period last year.
Q3 2018 European hotel investment
activity was driven by continued
growth particularly in the UK, Spain,
and Benelux. UK hotel investment
volumes reached €6.8bn (£5.9bn) in the
12 months to Q3 2018, reflecting a 15%
year-on-year increase, and accounting
for 30% of all capital invested into
European hotels.
Transaction volumes in Spain also
remained robust, registering the
second highest hotel investment
volume in Q3 and recorded an increase
of 57% year-on-year. Similarly, Benelux
posted strong performance, with an 8%
year-on-year increase in the 12-months
to Q3, which has largely been driven by
activity in the Netherlands.
Colin Low, head of hotel investment
properties at CBRE Hotels, said: “The
growth in key European markets such
as the UK and Spain has been fueled by
private equity and institutional investors
who had experienced yield compression
in the maturing hotel markets.
“With the heightened investment
interest and the threat of constrained
supply, investors are starting to look
beyond the core hotel markets for
opportunities, with Centra Eastern
Europe (CEE) taking centre stage.”
He added: “In Q3, we saw a visible
tightening of yields in key CEE cities
where we anticipate further investment
deals, both single asset and portfolio
investment deals.” The Reuben Brothers have acquired
54 and 55-57 Great Marlborough
Street from Quadrum Global in
order to develop a new hotel on
the site.
The site comprises two prominent
adjoining freehold buildings
currently totalling 44,000 sq ft with
100 ft of prime frontage to Great
Marlborough Street. It benefits from
full planning consent for demolition
and redevelopment into a 118-key
hotel with retail, restaurant and bar
area totalling 63,400 sq ft over two
basement levels, ground and seven
upper floors.
Along with their existing pipeline
of hotel developments in central
London, including near Grosvenor
Square Mayfair, the ‘In & Out Club’
on Piccadilly and the Millbank
complex in Victoria, the Reubens
Brothers will be bringing over 1,000
new hospitality jobs to the capital.
JLL and Michael Elliott, who
advised the sale, also advised the
owners on 47, 48 and 49-50 Poland
Street which was acquired by the
Reuben Brothers in August.
Jonathan Goldman, senior vice-
president, Hotels and Hospitality at
JLL said:“It is rare for a consented
hotel development site of this type
to become available in such a prime
area of London. We were pleased to
support Quadrum Global through
this sale which is another example
of the current strength of the
London hotel market.”
Mark Shipman, partner at Michael
Elliott added: “We are delighted to
assist and advise Quadrum Global
in executing their business plan
and disposing of this prime Soho
development opportunity.”
The London
Elizabeth Hotel
hits market for
£42.5m
The four-star, 52-bedroom hotel is set
over six floors and comprises 33,000 sq
ft of space, including the Rose Garden
Restaurant offering 40 covers.
Included in the sale is a car park
to the rear of the property located
on Elms Mews. There are significant
development opportunities for the site,
including an extension to the existing
property. Centrally located, The London
Elizabeth Hotel benefits from being
within walking distance of Lancaster
Gate and Paddington stations.
Alex Sturgess, director in the Savills
hotels team who is handling the sale,
said: “The London Elizabeth Hotel is
an excellent opportunity for an investor
to acquire a central London hotel that
has a host of development options. We
are pleased to bring the property to the
market on behalf of our client.”
We are delighted to assist
and advise Quadrum Global
in executing their business
plan and disposing of this
prime Soho development
opportunity
Mark Shipman, partner ,
Michael Elliott
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www.hotelowner.co.uk
European hotel
real estate
volumes reach
€22.9bn in Q3 2018
Reuben Brothers
acquire Soho site
to develop
118-room hotel
December 2018