INVESTMENT
companies ( SPAC ), Jaws Mustang Acquisition Corp ., in order to create a listed public company .
If and when the non-binding letter of intent morphs into a definitive agreement that yields the hoped-for transaction , the eight U . K . assets would include sprawling , Downton Abbeyworthy , luxury-tier properties , such as De Vere Tortworth Court in the Cotswolds or the more contemporary lakeside hotel , De Vere Cotswold Water Park . The portfolio represents 1,871 keys . The U . S . properties would be the 234-room 1 Hotel Central Park and the 195-room 1 Hotel Brooklyn Bridge in New York City .
It was a decade ago that Starwood Capital Group acquired De Vere Venues , a conference center and hotel operator , along with management and franchise contracts , for $ 385 million from De Vere Group . Several of those assets are in the current De Vere portfolio .
OFF THE ISLAND Camble also noted uppertier hotels had been selling in France and Spain , as well .
Among such deals as cited by HVS was the four-star Hotel Dame des Arts in Paris . The 109-key property was the first acquisition in Europe for South Korea-based Sono Hotels & Resorts , whose Sono Hospitality BV acquired the property for approximately € 120 million from fund TPG Angelo Gordon and investment platform EQ Group , which will continue to operate the asset .
In Spain , Seville ’ s Visasure acquired the four-star Hotel Mérida Medea Affiliated by Meliá in Badajoz , one of 17 hotels acquired last year by the seller , Abu Dhabi Equity Real Estate ( ADIA ). It ’ s anticipated the 126-key hotel will be run by AZZ Hotels ( Visasur ’ s operator ) and ultimately be rebranded as AZZ Mérida Medea Hotel , according to HVS . The acquisition price was not disclosed .
Similarly , Spanish holding company Grupo Fuertes , together with Canary Island developer / operator Satocan , acquired the four-star Hotel Tenerife Golf & Sea View from an undisclosed seller . The asset joined the 1,200-room Marina d ’ Or Resort in Oropesa del Mar , Spain , which Grupo Fuertes acquired this past November . In terms of an exemplary disposition , HVS noted Spain-based REIT Millenium Hospitality Real Estate sold the Hotel Eurostars Lucentum for € 29.9 million to an undisclosed buyer . The REIT had acquired the 169-key asset in Alicante in 2018 .
“ Spain has dominated the transaction landscape by total value of deals done these last three years and I suspect it may well top our [ top performer ] table again come January 2025 ,” said Whitebridge ’ s Camble . “ I foresee regional U . K . picking up and featuring in the top three again , perhaps joined by London , on the back of a great start to the year and because operating margins in London are so much better than in many other destinations .” Transactional activity also has been cited by HVS in Germany , Italy , Poland , Portugal , Scotland , Sweden , Switzerland and the Czech Republic .
Camble added headwinds for the European hoteltransactions market are
SPAIN HAS DOMINATED THE TRANSACTION LANDSCAPE BY TOTAL VALUE OF DEALS DONE THESE LAST THREE YEARS AND I SUSPECT IT MAY WELL TOP OUR [ TOP PERFORMER ] TABLE AGAIN COME JANUARY 2025
– PHILIP CAMBLE , DIRECTOR , WHITEBRIDGE HOSPITALITY likely to stem from financing complexities and lack of “ reasonably priced ” stock .
“ Financing has been robust with our debt-origination teams enjoying strong engagement from reputable lenders ,” said JLL ’ s Nelson . “ The variable that has caused challenges is down to swap rates and the volatility , which is having an impact on returns and cost of borrowing . This is a good barometer on the state of investor confidence and the macro-environment . While there have been threats of recession , it appears that we are en route to a soft landing based off recent indicators .”
CHANGING HANDS In its 2024 European Outlook , CBRE noted that while interest rate increases last year negatively impacted hotel investment volume across numerous markets , hotel transactions are expected “ to gradually pick up in 2024 [ with ] investment activity likely to be backloaded in the second half of the year after investors obtain clearer insight into interest rate movements .”
In terms of the type of assets most likely to trade , Camble suggested “ weaker full-service hotels will be most frequently traded … select-service and luxury hotel owners tend to be well funded and able to ride out any storm .”
“ Key themes that have resonated over recent years will continue into 2024 : prime urban gateway markets will continue to enjoy strong investor demand and the
74 hotelsmag . com May / June 2024