EXPERTS EXPECT IMPROVED TRADING CONDITIONS IN 2022 WILL LEAD TO BETTER UNDERWRITING AND MORE OPPORTUNITIES TO GET DEALS ACROSS THE FINISH LINE TO CREATE NEW PLATFORMS .
by JEFF WEINSTEIN , EDITOR IN CHIEF
talked to HOTELS about their expectations for M & A activity in 2022 .
WHAT IS THE APPETITE FOR ACQUISITION IN YOUR REGION ?
Charles Human , HVS Hodges Ward Elliott : Appetite for acquisitions in Europe is probably as high as it has ever been , although much of the demand is hoping to find distressed pricing , which basically doesn ’ t exist and is unlikely to do so .
David Mongeau , J . Pedro Petiz , Avington Group : All regions we are present in ( Americas , UK and continental Europe ) continue to benefit from the most accommodative monetary policies of our lifetimes , a big factor in the recovery having been one of the fastest ever seen . Although these regions are at different parts of the upcycle , with North America leading , Europe six to nine months behind and South America another six months after , institutional and private capital ( UHNI , Private Equity ) are already looking for transactions across all regions as they understand the stages of the cycle each region is in , and anticipate continued improvement in operating activity as restrictions on movement , traveling ease and an unprecedented amount of pent-up demand from the leisure and group business unfolds .
Christian Bunte , Avington Group : Over the past few years , we have witnessed a resurgence in internationally acclaimed celebrity chefs and restaurant groups expanding to continental Europe and the UK , specifically within full-service and luxury segments . In London alone , we ’ ve had Daniel Humm at Claridge ’ s , Dani Garcia at The Mondrian , and Nancy Silverton at Treehouse , among others . This trend has increased pace as several existing restaurant operators have folded or vacated their leases as a result of COVID closures and business downturn . The new entrants believe now is the time in the cycle to enter critical global markets such as London . We are aware of several more planning to enter the London market from North America and Southeast Asia in the near term , both as part of new build hotels , as well as a key component of existing hotel refurbishments and reprogramming to position for rebound from COVID .
WHAT TYPE OF DEALS ARE MOST LIKELY TO GET DONE ?
Charles Human , HVS Hodges Ward Elliott : Appetite is strong for large deals ( portfolios and large single assets ) from the private equity funds , so we do expect to see activity at the larger end . We have also seen a marked increase in appetite for resort hotels , which have fared well during the pandemic and we expect a continuation in this trend .
David Mongeau , J . Pedro Petiz , Avington Group : We believe that activity will remain strong across all asset classes , despite there being winners and losers as in previous recovery cycles . Large corporate and portfolio transactions will occur as the consolidation theme reemerges and liquid corporate and institutional players view current
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