INVESTMENT
WILL POST-COVID WORLD
by JEFF WEINSTEIN , EDITOR IN CHIEF
INJECT LIFE INTO LONDON M & A ?
With the second half of 2021 expected to show even greater signs of increased transaction volume in Europe with forbearance giving way to greater lender expectations , HOTELS asked two industry leaders based in London to talk about the marketplace for deals in the months ahead .
HOTELS asked HVS London Chairman Russell Kett and Avington Financial ’ s David Mongeau to forecast the road ahead for M & A in the London market . HOTELS : Offer your general outlook for increased M & A for London and what will drive it ?
Russell Kett : This all hinges on London ’ s recovery and how quickly this happens . Nothing has really started yet . Most people – HVS included – are confident of a recovery . There is a huge appetite to buy and very little is for sale . London has never been a liquid market for hotel sales – most people hold on to their investments for a while . David Mongeau : M & A remained muted in the space for most of 2020 as a result of COVID-related uncertainty and depressed 2020 results . From the corporate standpoint , there have been boutique operator mergers across all geographies [ in Europe ], as companies strived to maintain liquidity and cut costs . Little real estate volume actually transacted , but we saw several portfolios and single assets quietly sounded in the market , which turned out to be owners wanting to have ‘ free appraisals ’ given the ongoing uncertainty .
In April , Indian billionaire Mukesh Ambani ’ s Reliance Industries acquired the 49-room Stoke Park Hotel in Buckinghamshire , southwest of central London , from Hong Kong-based developer International Group , for £ 57 million (£ 1.2 million per room ).