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2014 European Hotel Transactions

2014 European Hotel Transactions

MARCH 2015 | PRICE £500

2014 EUROPEAN TRANSACTIONS

Jill Barthel – HVS ConsulƟ ng & ValuaƟ on Analyst Adrian Ruch – HVS Hodges Ward EllioƩ Analyst

www.hvs.com HVS London and HVS Hodges Ward Elliott www.hvshwe.com 7-10 Chandos St, London W1G 9DQ, UK

This license lets others remix, tweak, and build upon your work non-commercially, as long as they credit you and license their new creations under the identical terms. Others can download and redistribute your work just like the by-nc-nd license, but they can also translate, make remixes, and produce new stories based on your work. All new work based on yours will carry the same license, so any derivatives will also be non-commercial in nature. Highlights MARRIOTT HOTEL CHAMPS-ELYSÉES  European hotel transaction volume totalled €14.4 billion in 2014, an increase of 86% on 2013. This igure represents a new record since the onset of the global inancial crisis and marks a continuation of the market recovery seen in 2013. Not only was 2014 the highest year since the €20.3 billion recorded in 2006, it was also the fourth highest year on record;¹  Transactions were evenly spread over the year, with slightly higher volumes in the second quarter, owing to the sales of the Paris Marriott Hotel Champs-Elysées (€345 million, €1.8 million per room) and Le Méridien Etoile (€280 million, €237,000 per room), and in the fourth quarter, the sale of Louvre Group (€1.2 billion);  With regard to single asset transactions,  2014 witnessed the highest level of single both and experienced a asset hotel transaction volume on record, strong year, marking a recovery in their while portfolio sales achieved the ifth struggling economies; highest volume on record, behind 2001, 2005, 2006 and 2007;  While Middle Eastern investment decreased after an extremely strong  Total portfolio transaction volume 2013, investment by North American and (€6.9 billion) doubled compared to Asian entities increased substantially 2013. Portfolio igures were signiicantly in 2014. In addition to the Jin Jiang impacted by Jin Jiang’s acquisition of the deal, other Asian investments include 90,000-room Louvre Hotels Group in Kai Yuan’s acquisition of the Paris November; Marriott Hotel Champs-Elysées for  The UK remained the most liquid market €345 million. -based in Europe, followed by and Mount Kellett purchased Le Méridien . These three countries together Etoile in Paris for €280 million from accounted for 59% of total transactions Starman (€237,000 per room) and KSL in 2014; bought the 25-property Urban Village Resorts portfolio from De Vere Group for €613 million (€198,000 per room).

CHART 1: TOTAL HOTEL INVESTMENT VOLUME 2005-14 25

Portfolio Transactions 20 Single Asset Transactions Ten-Year Average

15

€ Billions 10

5

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: HVS – London Office

¹Only transactions that sold for more than €7.5 million are considered in this analysis. EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 2 Steady Times LONDON EDITION 2014 saw a continuation of the recovery in the European hotel investment landscape. Total transaction volume increased 86% on 2013 and 159% on 2012, overtaking the ten-year average of €10.5 billion and steadily approaching the pre-crisis levels of €20.3 billion and €18.8 billion recorded in 2006 and 2007, respectively. As an asset class, hotel and a Middle Eastern investment group real estate was the top growth sector in purchased London’s NH Harrington Hall for Europe last year, growing faster than office, €112 million (€560,000 per room). industrial or retail space. This interest is driven by hotels’ comparably attractive income returns and the significant Quarterly potential they offer for performance Investment Activity enhancement through clustering or reorganisation of the management and/or In 2013, the irst quarter alone accounted (re-)branding. for 55% of total transaction volume but 2014 shows a return to historical trends, While Asian investment nearly quadrupled with investments more evenly spread over in 2014, Middle Eastern investment the year. The second and fourth quarters fell by 21% after huge growth in 2013, were somewhat stronger than the irst and although investment from the region was third quarters. Quarter two was mainly still substantial in 2014, comprising 13% driven by single asset transactions, including of the total. Constellation Hotels Holding two of the three highest single asset sales: acquired the InterContinental Paris – Le the Paris Marriott Hotel Champs-Elysées Grand for €330 million (€702,000 per (€345 million) and Le Méridien Etoile room) as part of a larger portfolio, the Abu Paris (€280 million). Quarter four was the Dhabi Investment Authority (ADIA) paid an strongest, owing to the sale of Louvre Hotels undisclosed sum for the London EDITION Group in November for €1.2 billion, which accounted for around 8% of CHART 2: INVESTMENT VOLUME BY QUARTER total volume; 16 thus, November 15 Cumulative 14 was the Single Asset 13 29% of Total strongest month, 12 Portfolio 11 23% of Total accounting for 10 approximately 9 27% of Total 8 15% of total 7 21% of Total 6 transactions.

€ Billions 5 4 3 2 1 0 JFMAMJJASOND Q1 2014 Q2 2014 Q3 2014 Q4 2014

Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 3 Single Assets NH HARRINGTON HALL Single asset volume in 2014 was 72% higher than in 2013 and represented the highest level of single asset hotel transactions ever recorded in Europe. The average sales price per room decreased by 3%, which is mainly a relection of the sharp decline in prices per room in the French market – this is due to the fact that last Total investment in single assets in London year French transactions mainly included accounted for €1.5 billion or 60% of all UK sales in Paris, while this year sales have also single asset transactions. Notable sales include been recorded in secondary and tertiary cities, the London EDITION for an undisclosed sum pushing down the average price per room. to ADIA early in 2014, Strategic Hotel Capital’s It is worth noting, however, that the highest sale of the Marriott Hotel Grosvenor Square for prices per room were achieved in France, the €151 million to Joint Treasure International UK and , with individual prices per room and the sale of the NH Harrington Hall for as high as €1.8 million in Paris (Paris Marriott €112 million to a Middle Eastern investment Hotel Champs-Elysées, sold for €345 million), group. followed by €1.2 million per room in London (Parkcity Hotel, sold for €77 million) and The UK’s regions not only recorded a year €970,000 per room in Florence (Villa of exceptional hotel performance, but were Vignamaggio, sold for €30 million). also the subject of strong investor appetite. Spotlight on the UK Single asset transactions outside of the London metropolitan area accounted for 40% (or The UK held on to its position as Europe’s €1 billion) of total UK single asset transactions. most liquid hotel market for single assets Notable transactions took place in secondary in 2014. With a total transaction volume of cities such as , where Rocco Forte €2.5 billion (£2.17 billion), it carved a clear gap sold Hotel to Westmont Hospitality ahead of France (€1.4 billion) and Germany for €56.5 million (€342,000 per room). In (€827 million). This represents an increase for , Deka Immobilien acquired the the UK of roughly 40% on 2013². The country’s Edinburgh out of administration comparatively positive economic climate for €59 million (€248,000 per room) and fuelled strong hotel operating results and drove Capital bought the investment values in London and the regions. Edinburgh – The Roxburgh for €50.3 million (€253,000 per room) from a UK-based investor. MARRIOTT GROSVENOR SQUARE The Grand hotel was sold by De Vere Group for €60.4 million (€301,000 per room) to Wittington Investments. Spotlight on Ireland Ireland saw a substantial increase in transactions in 2014, mainly as a consequence of previously low levels of sales due to the economic struggles encountered by the country since the inancial crisis. Eight transactions occurred in , accounting for an investment volume of €308 million, almost two-thirds of the national total. Most transactions ranged between

²We note that during 2014 the pound sterling appreciated signifi cantly against the euro. EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 4 €10 million and €30 million; CHART 4: TRANSACTION VOLUME AND PRICES PER ROOM – GERMANY however, the largest were 140,000,000 350,000 The Shelbourne Dublin Total Volume (€112 million, €421,000 per 120,000,000 Average Price Per Room 300,000 Average Germany room) and the Westin Dublin 100,000,000 250,000 (€65 million, €399,000 80,000,000 200,000 per room), acquired by 60,000,000 150,000 US real estate investment Total Volume (€) irm Kennedy Wilson and 40,000,000 100,000 Average Price per Room Room (€) per Price Average US businessman John 20,000,000 50,000

Malone, respectively. These 0 0 two investors acquired Hamburg Dresden Munich a combined volume of Source: HVS London €258 million in Irish assets. total domestic investment accounted for 6% For the past seven years, Ireland’s economy of total transaction volume, but this igure has been troubled with high public debt; it was increased to 33% in 2014. severely affected by the global inancial and Domestic buyers included Brehon Capital real estate crisis. In this economic environment, Partners, a Dublin-based real estate private overall hotel proitability decreased and equity irm, investing a total of €57 million; JP hoteliers were burdened with large amounts of McManus, an Irish high-net-worth individual debt. However, since 2013, the Irish economy (€30 million); the Dalata Hotel Group, Ireland’s has been in recovery, with continued growth in largest hotel operator (€24.3 million); and the 2014. Decreasing unemployment, growing GDP Dublin Airport Authority (€15 million). and overall renewed investor conidence due to rising liquidity, falling bond yields and rising Spotlight on Germany return expectations substantially enhanced Germany registered the second highest number the attractiveness of the Irish hotel investment of transactions in Europe after the UK with 26 market. The growing economic strength of sales, 14% of all single assets sales in Europe Ireland’s main trade partners, the USA and the during 2014. The market recorded a total UK, further stimulated the transaction market, transaction volume of around €3 billion, out with the key buyers from the USA investing in of which around €827 million was derived assets across the country. from single asset transactions. While Munich The National Asset Management Agency led the way in terms of number of transactions (NAMA) was the key seller last year in the (four), its total volume of €88 million was well Irish market, with a total sales volume of below that of Hamburg (€126 million), Berlin €136 million. (€115 million) and Frankfurt (€100 million). The highest average prices per room were Growing investment conidence was also recorded in Hamburg and Berlin, well above recorded in the domestic market. In 2013, the average of CHART 3: BUYERS OF HOTELS IN IRELAND – DOMESTIC VERSUS USA AND OTHER INTERNATIONAL MARKETS 2014 AND 2013 €145,000. Whereas 2014 2013 Ireland 6% transactions in

Others Munich included 10% mainly budget and midscale hotels, Ireland 33% USA 25% the highest value transactions were Others 69% registered in USA 57% Frankfurt, with the sale of the Hilton (€100 million, Source: HVS London €292,000 per

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 5 room), and Berlin, with the Grand Hotel high-rise luxury hotel, and The Renaissance Esplanade (€89 million, €226,000 per room). Barcelona was acquired by the However, we note that two trophy properties in Armed Forces for €78 million from Marriott Hamburg and Dresden, the Hotel Atlantic and International. the Hotel Taschenbergpalais, both operated Spain was one of the European countries that by , also transacted in 2014 for had been hit the hardest by the inancial crisis undisclosed amounts. in 2007. With unemployment rates peaking at Spotlight on France around 28% and a youth unemployment rate of around 50%, many investors backed out Including single asset and portfolio sales, of the Spanish real estate market and sought France recorded a total transaction volume of investments mainly outside the Eurozone. €1.8 billion in 2014. Single asset sales accounted for 87% of this amount, with the vast majority However, with Spain’s economy seemingly on of transactions concentrated in Paris, such the way to recovery, hotel real estate has once as the sale of the Intercontinental Paris – Le more become attractive to investors, owing to Grand for €330 million (€702,000 per room) to its comparably high proitability. Increases in Constellation Hotels Holdings and the Pullman building prices in combination with falling rents Paris La Défense was acquired by the Qatar lowered investment yields. In addition to the Armed Forces for an undisclosed sum from higher proitability achieved from investments Invesco Real Estate. in the hotel sector, a growing industry further increases the attractiveness of hotel real Spotlight on Spain estate in Spain. Total single asset transactions in Spain One hotel operator that has beneited from accounted for 8% of total volume in 2014, this upturn in the Spanish hotel market is NH with the main investment focus remaining Hoteles, which was struggling with €1 billion in Barcelona and . However, while of debt until a major investment by HNA Group the number of transactions in Spain of in 2013. Although NH is upgrading surpassed France, Spain’s total single asset existing properties to help enhance RevPAR transaction volume is still well below that performance and competitiveness within the of France (€578 million versus €1.4 billion), market, the group has also started to dispose of underlining the high price per room some of its assets. The irst to be sold in Spain achieved by properties in France, mainly was the Sotogrande portfolio (€225 million) Paris, in comparison to those in Spain in 2014, which included the NH Almenara and (€380,000 versus €327,000). the NH Sotogrande, as well as stakes in the Major deals include the acquisition of the surrounding golf course and development land. landmark Deutsche Bank Tower in Barcelona by Spanish investment management irm Portfolio KKH Capital for more than €90 million from Deutsche Bank, for redevelopment into a Transactions 2014 was also a strong year for portfolio CHART 5: PORTFOLIO INVESTMENT VOLUME 2005-14 investment with total volume double that of 16 80 2013 at €6.9 billion, representing 48% of total Portfolio Transaction Volume 14 70 European hotel investment. This total sets a Number of Transactions

Number of Transactions of Number clear record since the onset of the inancial crisis 12 60 and 2014 is the ifth highest year on record 10 50 after 2001, 2005, 2006 and 2007. Portfolio € Billions 8 40 transaction volume has grown at a compound annual rate of 15% since 2008. In 2014, 33 6 30 portfolio deals (representing more than 152,000 4 20 rooms) were recorded.

2 10 The largest portfolio deal in 2014 was the sale

— 0 of Louvre Hotels Group (1,100 hotels, 90,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 rooms), which was acquired by Shanghai-

Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 6 CHART 6: PORTFOLIO INVESTMENT BY REGION – 2014 VERSUS 2013 included in the Project 2014 2013 Europe, , Fico or Adina portfolios were located in Other Germany, and the UK Other 23% UK 37% strong economic 38% 36% role that Germany plays in Europe Germany continues to reassure 18% investors. The share Germany France 20% of cross-border France 23% 5% portfolio transactions

Source: HVS – London Office increased, strongly inluenced by Jin Jiang’s acquisition of based Jin Jiang from Starwood Capital for Louvre Hotels Group. €1.2 billion. Jin Jiang is one of China’s largest hotel companies, operating more than 1,700 Buyers hotels in 11 countries. Starwood Capital had already disposed of smaller pieces of the Louvre In 2014, hotel operators were on a spending portfolio: another 40 hotels were sold in 2014 spree in terms of portfolio acquisitions, driven for an undisclosed sum and four hotels were largely by Jin Jiang’s acquisition of Louvre sold for €700 million to Constellation Hotels in Hotels Group and Accor’s HotelInvest division, 2013. which re-purchased a total of 110 Accor- branded hotels. Hotel operator investments in In three separate portfolio transactions, Accor’s single assets were made, amongst others, by HotelInvest bought a total of 110 hotels already Millennium & Copthorne, which acquired the managed by Accor: 86 hotels were acquired in Wyndham Grand London Chelsea Harbour for Germany and the for €722 million €78.8 million (€498,000 per room). (€64,000 per room) from Moor Park, 11 properties in were bought from Real estate investors represented 35% of Axa Real Estate for €178 million (€115,000 per the investment volume in single assets and room) and a portfolio of 13 hotels in the 14% in portfolios. This group has continued UK was acquired from Tritax for €89 million its diversiication into hotel real estate (€74,500 per room). The Urban Village Resort in recent years, with the largest share of portfolio in the UK, comprising 25 hotels, was 2014 transactions driven by Kai Yuan with bought by KSL Capital Partners for €613 million its acquisition of the Paris Marriott Hotel (€198,000 per room) from the De Vere Group. Portfolio Investment by Region RENAISSANCE BARCELONA The UK topped the rankings in terms of regional portfolio transactions (that is, the number of portfolio transactions taking place in a single country). Total portfolio volume of €2.5 billion was recorded in the UK, accounting for 37% of total European portfolio volume for the year; although, UK portfolio sales accounted for only 17% of all rooms sold in portfolio deals. While France achieved a larger share in 2013, owing to earlier France- based transactions of hotels, it only accounted for 5% of the 2014 European portfolio volume. Germany further strengthened its position as the second biggest portfolio transaction region. Many of the rooms

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 7 CHART 7: BUYER TYPES IN 2014 – SINGLE ASSET SALES VERSUS PORTOFLIO

Single Assets Real Estate Portfolios Undisclosed, Investor 9% Government, Bank/Receiver Hotel Operator High-Net-Worth 8% 10% Individual 8%

Institutional Hotel Operator Investor 20% 38% Private Equity Real Estate 41% Investor 38% Private Hotel Investment Equity 11% Company 5% Institutional Investor 2% Hotel Investment Source: HVS – London Office Company 10%

Champs-Elysées. Notable transactions from example, Constellation Hotels’ acquisition of institutional investors include the acquisition four Groupe du Louvre hotels for €700 million of a 144-hotel portfolio by a and the InterContinental Park Lane London consortium comprising Goldman Sachs, for €463 million, plus ADIA’s purchase of 42 Avenue Capital and Golden Tree Asset UK Marriott hotels for €640 million), 2014 Management for €655 million (€79,000 per saw a return to more typical trends recorded room) and the acquisition of the Clarion Hotel in recent years with Middle Eastern buyers Arlanda Airport in Stockholm for €121 million representing 13% of total investment. North (€291,000 per room) by Norwegian group, American investments accounted for 26% of Storebrand. total volume in 2014, up 13 percentage points on 2013, demonstrating that North American Private Equity irms are showing sustained capital is again increasingly seeking hotel interest in hotel portfolios as well as single investment outside of the USA, following the assets, with irms such as Apollo Global trend in other major real estate classes in which Management, which acquired a portfolio of 18 North America is the largest regional source hotels across Europe (€425 million), and Joint of investment in Europe. Asian investment in Treasure, which purchased the Marriott Hotel Europe saw a strong increase in 2014 compared Grosvenor Square (€151 million, €638,000 per to 2013, accounting for 17% of total volume (or room) in London. KSL Capital Partners acquired €2.38 billion). While Asian investment in 2014 the Urban Village Resort portfolio and Mount was strongly inluenced by Jin Jiang’s acquisition Kellett purchased Le Méridien Etoile in Paris. of Louvre Hotels Group, it is still a good sign of Hotel investment companies made further strong interest for Asian investors to allocate strategic acquisitions with Westmont capital in Europe. Hospitality purchasing the Lowry in Manchester from Rocco Forte

(€56.5 million, €342,000 CHART 8: INVESTMENT BY REGION per room) and Asia-based Far East Orchard, which 100% acquired four Adina Hotels in Germany and 80% for €107 million Undisclosed

(€203,000 per room). 60% Africa Buyers by Region Asia 40% Middle East In terms of source of North America capital, while very 20% Europe large Middle Eastern investments dominated 0% 2013 representing 30% 2010 2011 2012 2013 2014 of total volume (for Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 8 CHART 9: SELLER TYPES – SINGLE ASSET VERSUS PORTFOLIO

Single Assets Portfolios

Institutional Hotel Investment Bank/Receiver 2% Investor 14% Company 5% Private High-Net-Worth Equity Individual 2% 9% Hotel Operator 21% Real Estate Private Equity Institutional Investor 21% Hotel Operator 38% Investor 3% 21%

Government 1% Real Estate Undisclosed 12% Hotel Investment Investor 26% Bank/Receiver Company 5% Undisclosed 5% 15%

Source: HVS – London Office Sellers Conclusion Similar to the composition of buyers, the most 2014 saw a continuation of the clear upward active sellers include real estate investors, trend in the recovery of the European hotel institutional investors and hotel operators. investment market. Supported by strong The most notable sales by hotel operators hotel performance data in important markets, include the sale of the InterContinental Paris such as the UK, hotel assets have clearly once – Le Grand by InterContinental Hotels Group more become a focus for investors. Compared (€330 million, €702,000 per room), the sale to other real estate asset classes, hotels of the London EDITION by Marriott and saw the strongest growth in 2014, further the St. Regis in Rome by Starwood Hotels & cementing their position in the investment Resorts (€110 million, €683,000 per room). sector, albeit total investment values are still In terms of portfolios, the De Vere Group in small compared to ofice or retail sales. the UK disposed of a total of 54 hotels (in Demand for prime assets in key gateway three transactions) for a total of €1.1 billion. cities is very strong and we do not expect Real estate investors’ dispositions included this to change in the near term. Prices in assets such as Le Méridien Etoile by Starman capital cities such as London or Paris are very (€280 million) or the Hilton Frankfurt by high, which is relected by correspondingly London & Regional (€100 million). Starwood low yields. This situation leads investors Capital disposed of Louvre Hotels Group, for a increasingly to consider secondary and total of €1.2 billion. The main disposition by tertiary investment locations, especially institutional investors was Moor Park’s sale in the UK, where the regions enjoyed of Fund I and II including 86 Accor-branded exceptionally good performance during 2014. hotels. We expect interest in such provincial markets to continue to grow during 2015. We also Additionally, banks/receivers accounted expect increased activity in other key gateway for a sizeable proportion of predominantly cities such as Amsterdam and Barcelona. single asset hotel sales in 2014. This category is directly linked to the roughly 15% of all While many investors sought alternative transactions of single asset hotels classiied investments outside the European Union as distressed. As a comparison, in 2013 during the economic downturn, the European only 10% of transactions were classiied as hotel market has regained its attractiveness, distressed. One such notable transaction and even once-severely-troubled markets was Bank of ’ sale of the JW Marriott such as Ireland and Spain are showing clear in for €95 million (€237,000 per signs of recovery and hotel investment room). NAMA was also a large contributor interest. to distressed asset sales, selling several – HVS – properties in Ireland (see Spotlight on Ireland).

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 9 Ivanhoé Cambridge Undisclosed Stardon Captial Investments (JV formed between Chardon Hotels and Starwood Capital) Louvre Hotels (Starwood Capital) Starwood Capital Group GSSG Holdings Undisclosed Zippers & Co. Real Estate München and E&G Bridge Grand City Hotels Toga Investments Moor Park Fund I and II Ulster Bank Undisclosed NH Hoteles Pandox Rivelsrud family obilien AG Buyer Seller ce per i r P Room (€) Price (€)

f er o b Rooms um N

f er o b 5 1,383 Undisclosed Undisclosed Katara Hospitality 18 3,878 425,000,000 110,000 Apollo Global Management International Hotels um N , , France , Germany, Netherlands, Spain Belgium, Germany 9 1,107 80,000,000Germany 72,000 Fico Corporation 4 868 80,000,000 92,000 Invesco Real Estate Various - France, Germany, Italy, The Netherlands, Spain GermanyGermany, Denmark 4 4 526 500 107,000,000 Undisclosed 203,000 Undisclosed Asset Management DTZ Far East Orchard t p ndham Antwer y Days Berlin West, Dresden, ibis Hotel Erfurt Ost, Gelsenkirchen, TRYP by Wyndham Bad Oldesloe, Berlin City East, Wyndham Leipzig North, TRYP by Garden Bad Malente, W InterContinental Carlton Cannes, Frankfurt, De La Ville Rome, InterContinental Amstel Amsterdam, Madrid Wyndham Köln , Tryp by City Center Hotel Bonn Hardtberg , Tryp by Wyndham Frankfurt Hotel Adina Checkpoint Charlie, Apartment Frankfurt Neue Oper, Adina Hauptbahnhof, Copenhagen InterCityHotel Darmstadt, Rostock, Mainz, InterCityHotel Frankfurt Airpor Project EuropeFico Portfolio Various 26 Louvre-Branded HotelsLouvre PortfolioLouvre Hotels GroupFive InterContinental Hotels VariousTwo Marriott Hotels in Munich Various VariousGrand City Hotels Portfolio Courtyard Munich City East, Residence Inn East Germany France 2 France Various 352 26 65,000,000 185,000 1,820 PATRIZIA Imm Undisclosed 1,100 40 Undisclosed REIM Viveris 90,000 2,800 1,200,000,000 Undisclosed 13,000 Undisclosed Jin Jiang International Holdings Col A Range of Small Investors Four InterCityHotel Properties Property Hotels Location Adina Hotels 86 Accor-Branded HotelsClayton and WhitesRIU Resort of MauritiusNH Sotogrande Stake VariousPandox Portfolio72 Rica Hotels Clayton Hotel, Whites Hotel RIU Le Morne, Creole, Coral NH Almenara , NH Sotogrande Various Various Ireland Germany, Netherlands Spain 3 86 2 11,286 530 722,000,000 2 352 80,000,000 64,000 151,000 Hotellnvest Sweden, 31,700,000 254 RIU Hotels & Resorts 90,000 225,000,000 Dalata Hotel Group 886,000 Cerberus and Orion Capital 72 14 7,200 2,430 Undisclosed 242,200,000 Undisclosed Scandic 100,000 Fastighets AB Balder Source: HVS London CHART 10: EUROPEAN PORTFOLIO TRANSACTIONS 2014

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 10 Axa Real Estate De Vere Group JER McAller & Rushe Royal Bank of CHGF Bridgepoint Goldman Sachs Prestbury Investment Holdings, West Coast Capital, Aldersgate Investments, and Lloyds Bank Tritax LRG Holdings Ltd De Vere Group De Vere Group Undisclosed Stardon Captial Investments (JV formed between Chardon Hotels and Starwood Capital) McMillan Hotels Forestdale Hotels (was part of Akkeron Group, now in administration) Sanktay Advisors & Canyon Capital (backers of Qhotels) Consortium comprising Goldman Sachs, Avenue Capital and GoldenTree Asset Management Buyer Seller Chardon Trading Price per Room (€) Price (€) Rooms Number of Hotels Number of UK 8 730 94,300,000 129,000 Topland UK 4 497 Undisclosed Undisclosed Kew Green Hotels UK 6 861 204,400,000 237,000 UK 6 914 109,000,000 119,000 Starwood Capital Group y Brighton – Seafront, North, Garforth, Holiday Inn – East Kilbride Cameron House, Dunston Hall, Oulton Mottram Slaley Belton Woods Hallmark Hotel Bournemouth, Carlisle, , Hallmark Hotel , Gloucester, Hull, Hotel Manchester Airport, Hallmark Inn Derb Cotswold Water Park Four Pillars Hotel, Totworth Court Spires Four Pillars Hotel, Oxford Thames Witney Pillars Hotel, Oxford Abingdon Four Hotel Two Accor-Branded HotelsKew Green Holiday Inn Portfolio Reading Centre, Hotel ibis Centre UK 2 360 44,900,000 125,000 Invesco Real Estate Former Queens Moat House PortfolioTravelodge Portfolio Various UK ibis Portfolio19 Holiday InnsUrban Village Resorts PortfolioDe Vere Hotels & Luxury Lodges Various Various Various Various UK UK 11 UK UK 2,000 UK 170,000,000 85,000 144 Marathon Asset Management 8,256 25 13 654,900,000 19 3,100 79,000 1,194 613,300,000 2,335 89,000,000 198,000 75,000 88,200,000 KSL Capital Partners HotelInvest 38,000 Kew Green Holdings Ltd Peebles Portfolio14 Forestdale Hotels Peebles Hydro, Park Hotel Various UK UK 2 156 Undisclosed 14 Undisclosed Hydro Creiff 864 Undisclosed Undisclosed James's Hotels Group St Property Hotels Location 11 Accor-Branded HotelsDe Vere VenuesFour Pillars Hotels Various Various Switzerland UK 11 1,552 178,000,000 115,000 23 Hotellnvest 2,433 278,900,000 115,000 Starwood Capital Group Hallmark Portfolio Three HotelsMorethanhotels Regional PortfolioTwo Hotels Various Jurys Inn Swindon, , Holiday Inn Express Edinburgh – Royal Mile, Dunfermline UK UK 2 160 3 14,800,000 UK 93,000 686 12,000,000 18,000 Jurys Inn Hotel Group 12 1,399 85,000,000 61,000 Somerston Capital and Lone Star (JV) Source: HVS London CHART 11: EUROPEAN PORTFOLIO TRANSACTIONS 2014 – CONTINUED

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 11 n Managers (Immoselect open-ended fund) Investment Managers Group ian Hotel Holding kstone Group Undisclosed Buyer Seller (€) Price per Room Price (€) Rooms Number of Hotel PapagenoPark Inn by Radisson Brussels MidiGrand Hotel PomorieKempinski Hotel Zografski (92.84% stake)Hilton Imperial DubrovnikFour Seasons PragueHotel SavoyAugustine HotelKlaus K HotelPorarinkatu HotelRadisson Blu Hotel, Biarritzibis Le Havre CentreHilton Lyon BelgiumHotel Novotel Nantes Centre GareGarden Beach HotelHoliday Villa Lafayette ParisPark Inn Paris Charles de Gaulle AirportParis Marriott Hotel Champs-Elysées Austria Sofia BrusselsLe Méridien Etoile Bulgaria CroatiaInterContinental Paris – Le GrandHôtel de VendômeHôtel Atlanta-Frochot (to be renamed Le Pigalle) Republic Czech Pullman La Defense Vienna PomorieMercure Terminus Nord Dubrovnik PragueHoliday Inn Reims Centre France Republic Czech Sophia Country Club FranceTrianon de Versailles, A Waldorf Astoria Hotel Finland FranceSteigenberger Hotel Bad Homburg France 142 PragueGrand Hotel Esplanade Berlin France 354 FranceMercure Hotel Berlin City France BiarritzWorld Conference Center Hotel (development) Undisclosed Nantes FranceNH Köln Mediapark France Espoo 48,500,000 France Helsinki Paris UndisclosedSteigenberger Hotel Deidesheim France 175 Le Havre Undisclosed 147Hotel Taschenbergpalais Kempinski 50 Paris 137,000 ParisMaritim Hotel & International Congress Center Dresden 161 Paris FranceHoliday Inn Express (development) Victoria Group VM EAD 8,400,000 31,500,000 Nice UndisclosedHilton Frankfurt Lyon Paris Undisclosed FranceArcotel Onyx Hamburg 101 Versailles Undisclosed 61Hotel Atlantic Kempinski 214,000 France Germany 48,000 Undisclosed France Bauer Edgar France GermanyCrowne Plaza Hannover Northwood Investors Germany Adris Group 150Maritim Grand Hotel Evgeny Georgiev Undisclosed Paris 105 UndisclosedInterCityHotel Leipzig France 139 Germany 133 UndisclosedMercure Hotel Leipzig am Johannisplatz Paris Undisclosed 116 Undisclosed 180 Bonn GledenInvestNovum Business Hotel Aviva Leipzig Neue Messe Undisclosed Warimpex Finanz- und Beteiligungs AG Paris Bad Homburg Germany Paris UndisclosedEurostars Book Hotel Dresden Undisclosed Reims 10,000,000 192 Germany Germany Undisclosed JMA Hotellerie 47Best Western ApartHotel München 10,000,000 15,000,000 37 Undisclosed UndisclosedRilano 24|7 Hotel München City Berlin 175 Sophia-Antipolis Germany Kämp Group 344,500,000Nordic Munich 199 75,000 199 470 Germany 86,000 Undisclosed 83,000 10,500,000 Berlin VVT Kiinteistosijoitus Oy 1,800,000 Dresden Deidesheim 30,000,000 Heirs of Ivan Zografski Undisclosed Undisclosed 140,000,000 CTF Development 25,000,000 330,000,000 Kai Yuan Holdings 123Venture and Perseus Capital Partners (JV) Undisclosed Germany 284,000 1025 Düsseldorf 169 171,000 704,000 Cologne Groupe Maranatha 702,000 126,000 Germany Germany International Investor Germany 29 280,000,000 Chetrit Group Financiére Immobiliére Bordelaise 336 Germany 328 Constellation Hotels Holding Ltd Les Cles du Luxe 155 Avestus Capital Partners 236 Germany 20,100,000 382 82 Leipzig 273,000 Undisclosed 17,000,000 Undisclosed Germany Beta Corp 49,000,000 Undisclosed 394 Germany 119,000 Undisclosed Leipzig Germany Mount Kellett Capital Management LP Hamburg Atlantska Plovidba Undisclosed Undisclosed Hamburg Undisclosed 123 Frankfurt Undisclosed Art-Invest Real Estate Management Chopard Undisclosed Germany 51,000 245 Hannover 246 149,000 Undisclosed Group Eren Undisclosed 89,100,000 Invesco Real Estate Qatar Armed Forces Investment Portfolio Raiffeisen Evolution Germany Private French Buyer 164 Undisclosed INTERNOS Global Investors Jorg Haas Hannover Munich Undisclosed 26,000,000 Leipzig Damson 226,000 217 Undisclosed YIT Corporation 18,000,000 Group of Chinese investors Undisclosed Munich Accor Host Hotels & Resorts JV APG GIC (Govt of ) Germany 106,000 Conradi Erwin Undisclosed Blac 29,500,000 Munich InterContinental Hotels Group 140 110,000 INTERNOS Global Investors Invesco Real Estate Tamweelview European Holdings SA 215 Starman Dereco Cofinance 245 136,000 174 Event Hotel 342 Advance Synergy Berhad JV Memory Gate Sdn Bhd Undisclosed Munich 201 Invesco Real Estate Internos Hotel Real Estate Fund AXA Real Estate Investmet 40,000,000 Undisclosed Undisclosed 20,000,000 100,000,000 285 Groupe Partouche Groupe Partouche Undisclosed 17,000,000 186 Undisclosed 166 186,000 Broermann Hotels & Residences GmbH JV Asklepios Kliniken Dr 292,000 115,000 45,000,000 Deka Immobilien 53 AXA Real Estate 85,000 Private Investor Art-Invest Real Estate Management 19,000,000 Octav 21,000,000 201 Morgan Stanley JV Paris Inn Group Algonquin Undisclosed 158,000 Undisclosed 10,000,000 102,000 Friedrichswall GmbH Benson Elliott Capital Management 127,000 Undisclosed Undisclosed 192 Piettal GmbH Internos Global Investors ActivumSG 189,000 City of Bonn Undisclosed Undisclosed InfraRed Capital Partners Russian Family Office 8,500,000 Octav Property Country Location Source: HVS London CHART 12: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2014

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 12 anca JV UniCredit Bank of Ireland tate Ltd Buyer Seller (€) Price per Room Price (€) Rooms Number of Property Country Location Clarion Hotel Dublin City (IFSC)Hilton DublinCitywest Hotel and Conference CentreWestin DublinPearse Hotel The Lodge at DoonbegKilkenny River Court HotelMalton HotelSavoy HotelAdare Manor Hotel & Golf Resort The Strand HotelKillashee House HotelPortmarnock Hotel & Golf Links IrelandMount Juliet Resort IrelandPerla IonicaVilla VignamaggioATA Hotel Fieramilano Club Med PregelatoForte Village Resort Dublin DublinSt. Regis Rome IrelandBoscolo Aleph Hotel Ireland IrelandBoscolo Palace Roma Ireland IrelandNH Amsterdam Centre IrelandRadisson Blu Hotel, AmsterdamHoliday Inn Express Amsterdam – Sloterdijk Station Dublin IrelandHoliday Inn Express Amsterdam – Schiphol Ireland Kilkenny DoonbegKurhaus Hotel Limerick Dublin Ireland IrelandQuality Hotel Gardermoen Airport Ireland DublinQuality Hotel Expo (93% stake) 789 147Rica Hotel G20 IrelandScandic Nedre Elvehavn Hotel - Solsiden Portmarnock (Dublin) Killarney Netherlands 29,000,000Westin Warsaw (parital interest) 33,000,000 ItalyBelgrade Hotel Naas Italy Limerick Limerick ItalyJW Marriott Bucharest Grand Hotel Italy 37,000 224,000City (90% stake) Amsterdam Netherlands Italy Thomastown 193Hotel Hesperia Finisterre Patron Capital 218 Brehon Capital Partners 90 138 NetherlandsDeutsche Bank Tower 62 Italy 163Hotel Vincci Gala Italy Italy Netherlands 30,000,000 101 15,000,000 Amsterdam Florence 30,000,000 9,000,000 Acireale (Sicily) Norway 30,000,000 65,000,000 Amsterdam Pregelato 155,000 Norway 172 Pula/Sardinia 69,000 9,000,000 217,000 Norway Amsterdam 100,000 484,000 John Malone 399,000 94 184 Rome Trump Organisation Kennedy Wilson 141 William Neville & Company 15,000,000 Rome Rome 254 JP McManus 86 John Malone and Lalco Hotel Group 89,000 Oslo Netherlands Romania 17,000,000 20,700,000 Trondheim Dalata Hotel Group 13,000,000 87,000 23,000,000 15,000,000 Oslo 459 244 Norway Joe Scally 181,000 113,000 The Hague 31 Romania 238 252 92,000 91,000 174,000 788 Warsaw 234 Consortium of Investors John Malone Bank of Scotland (Ireland) 35,200,000 Burcharest 9,300,000 234 Spain Brehon Capital Partners Brehon Capital Partners Invesco Real Estate 25,000,000 30,000,000 85,000,000 180,000,000 50,000,000 Spain Oslo 77,000 KPMG (Receivers) on behalf of NAMA 38,000 52,400,000 Cluj-Napoca 96 105,000 968,000 337,000 161 228,000 Undisclosed Item Srl 87 214,000 155 Archon Group Spain BNP Paribas RE Property Dev Undisclosed Union Investment 326 224,000 Progetto Esmeralda Srl (Lorenzo Giannuzzi) Moscow HSBC Assurances Vie A Coruña KMPG 40,000,000 110,000,000 Fonciére des Murs 65,500,000 253 20,600,000 301 Barcelona King Street 37,000,000 401 683,000 417,000 361 Mazars (NAMA) Undisclosed 753,000 133,000 32,600,000 58,000,000 Subsidiary of Constellation Hotels Holding Ltd Al Rayyan Tourism and Investment Barcelona 114,000 NAMA Millennium & Copthorne Citywide Leisure Byggteknikk Prosjekt 95,000,000 Undisclosed 85 KLP Eiendom AS 129,000 193,000 Undisclosed Undisclosed 96 sgr FIMIT Amrath Hotels Group 237,000 Pareto Skanska NAMA OBO Faxhill Homes Killeen Group Holdings 11,100,000 STRABAG SE 232 92 IVG Asticus Real Es NAMA 17,800,000 Undisclosed 150 131,000 Hotels & Resorts Starwood Unipol Gruppo Finanziario Undisclosed 12,500,000 Undisclosed 185,000 Undisclosed 78 90,000,000 Ragde Eiendom AS Alexander Klyachin Recreation Srl 136,000 Raiffeisen Bank JV Banca Agrileasing Veneto B Undisclosed Ping Properties Investment Management 600,000 Finisterre Holdings NH Hoteles 20,000,000 Undisclosed Al Hame Hamed KKH Capital Grand Hotel Palace 256,000 NIAM Undisclosed Eiendomsfond Norge Hatfield Philips (acting for owners) Bank of Cyprus SPS Investments Aker Solutions Undisclosed Undisclosed Dan Sorin Banco Popular Deutsche Bank Activ Group Steigenberger Hotel RemarqueJasmar Resort RugenARCOTEL CaminoArcadia Hotel TrierCrowne Plaza WiesbadenInterContinental BudapestOriel House Hotel Maldron Hotel Parnell SquareClarion Dublin AirportThe Shelbourne Dublin, A Renaissance Hotel Germany Germany Osnabrück Ireland Germany Germany Germany Ireland Sagard Ireland Dublin Wiesbaden Ireland Stuttgart Budapest Trier Dublin 156 Ballincollig Dublin Undisclosed Undisclosed Private Investor 129 235 168 265 402 Undisclosed 21,000,000 105 126 111,500,000 24,000,000 Undisclosed Undisclosed Precise Hotel Collection 78 89,000 Undisclosed Undisclosed 421,000 143,000 15,300,000 Al Habtoor Group 248 CR Investment Management Undisclosed Kennedy Wilson Patrizia Immobilien 8,000,000 Asset GmbH VI 121,000 15,000,000 Dalata Hotel Group 103,000 Talbot Hotel Group 60,000 Dublin Airport Authority Internos Global Investors Undisclosed AP Invest Undisclosed Ejendomme Euro Irish Bank Resolution Corporation and Undisclosed Undisclosed Undisclosed NAMA Source: HVS London CHART 13: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2014 – CONTINUED

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 13 t ve V) Undisclosed Patrimonios RIU Hotels C-ME Tourism Kocoglu Group Buyer Seller 7 (€) Price per Room Price (€) Rooms Number of Deganwy Quay Hotel Marine ParadeRadisson Blu Hotel, DurhamTravelodge York Place (development)Crowne Plaza Edinburgh – The RoxburghDoubleTree by Hilton Hotel Edinburgh City CentreHub by Premier Inn Torpichen St. (forward funded sale of site)Travelodge LearmonthRadisson Blu Hotel, EdinburghLough Erne Resort UKTravelodge EpsomHemel Hempstead Gateway Hotel UKTravelodge High Wycombe CentralTravelodge Llanelli Central Hotel UK UK UK UK UK Edinburgh Edinburgh Edinburgh Edinburgh UK Dover Deganwy Durham UK UK UK 150 UK UK UK 21,900,000 138 Edinburgh Edinburgh 127 199 Hempstead Hemel 146,000 31,700,000 Wycombe High 74 Aberdeen Asset Management 100 207 21,100,000 50,300,000 Llanelli Enniskillen 230,000 Epsom Redefine International 11,600,000 166,000 20,700,000 8,800,000 253,000 USS Starwood Capital 108 238 116,000 100,000 118,000 120 62 ABF Pension Fund Private UK Investor Inspire Ltd 9,600,000 59,000,000 13,600,000 9,300,000 120 248,000 89,000 53 113,000 Deka Immobilien Interser Coal Pension Properties (CPP) 64 150,000 10,500,000 Legal & General Property 17,000,000 Mansfield District Council 87,500 7,500,000 321,000 Tralee Portfolio Management Undisclosed Ignis Asset Management 117,000 Undisclosed UK-Based Investor Grant Thornton Clay Street Property Investment Consultants Kier Group PLC Capital Group Consensus Albemarle Leisure LLP Property McLaren M&G Real Estate Administrators (Deloitte) KMPG DevSecs Kier Group PLC and Network Rail (JV) Property Country Location AberdeenPremier Inn Titanic QuarterRamada Sutton Coldfieldibis Styles Birmingham CentreGrand BrightonGrand Hotel and SpaGreenwoods Hotel and SpaHoliday Inn Express Town Centre UK UK UK UK UK Belfast UK Birmingham UK UK Aberdeen Cheltenham Birmingham Islands (St Helier) Channel Chelmsford 170 Brighton 121 123 132 8,100,000 120 80 7,500,000 18,800,000 17,500,000 48,000 Undisclosed 27,300,000 62,000 153,000 Undisclosed Undisclosed 39 133,000 Investment Management LaSalle Hand Picked Hotels Undisclosed 341,000 Lumina Real Estate Capital and Trust Group (J 201 Aberdeen Asset Management 7,900,000 60,400,000 202,000 Offshore Hotel Investor 301,000 Wittington Investments Hong Kong Investor Aviva Investors RBS Real Estate Management Undisclosed Undisclosed Smith & Williamson Vere Group De Renaissance Barcelona HotelMeliá Jardines del TeideAC Cordoba Palacio (now the Eurostars Palace)Foxa 32 SuitesFoxa 25 Suites Hotel Asturias Calle Sevilla 2 Grupotel Valparaiso Palace & Spa¹ Hipotels Mediterraneo (Formerly Blau Hotel) NH AlandaLa Quinta Golf Resort SpainHotel Guadalmina Spa & Golf Resort SpainRIU Olivina Resort (now the Ole Lanzarote)Hotel Roc Golf Trinidad SpainEsperanza MarSol Aloha PuertoScandic Opalen Cordoba SpainRadisson Blu Hotel Scandinavia MajorcaGrand Hotel Opera Spain Spain SpainElite Hotel Marina Plaza BarcelonaBest Western JagersroOmena Hotell Spain Calle Agando (Tenerife) SpainClarion Hotel Arlanda Airport SpainBest Western Täby Park MajorcaScandic Foresta Puerto Del Carmen (Lanzarote) Madrid SpainKarinna Hotel 162 300 Madrid 840 290 Marbella Spain Madrid Spain 25,000,000 211 36,700,000 75,000,000 Undisclosed Sweden 154,000 Marbella 78,500,000 Undisclosed Spain 122,000 Spain Hotusa Group and H10 Hoteles (JV) 89,000 Mazabi Gestion de Marbella Hispania Activos Immobiliarios Sweden 174 372,000 Roquetas De Mar Hipotels Sweden Sweden 175 Gothenburg Qatar Armed Forces Sweden Sweden 48,000,000 161 178 Servera (Majorca) Son 35,300,000 121 Torremolinos Sweden Gothenburg 276,000 Helsingborg Sweden Gothenburg 16,800,000 21,500,000 202,000 Jiangsu GPRO Group 172 10,500,000 Malmo 377 Stockholm Platinum Estates Sweden 104,000 121,000 AC Hotels/Marriot 270 199 Undisclosed Stockholm 87,000 Undisclosed 349 Blas Herrero Fernandez Hispania Activos Immobiliarios Stockholm Undisclosed Pryconsa Undisclosed Undisclosed Undisclosed 18,000,000 Quinta & Suites La Roc Hotels Balear 261 75,400,000 Stockholm 353 Undisclosed 194 Al Hokair Group Fawaz 198 67,000 216,000 20,800,000 Osmangazi 414 62,100,000 Grupotel Fastighets AB Balder 36,100,000 16,700,000 81 80,000 147 120,700,000 176,000 Blau Hotel & Resorts 186,000 Private Investor 251 84,000 10,000,000 Balder Elite Hotels 291,000 14,400,000 Fastighets AB Balder Grupotel Owner Family Group Undisclosed 103 Storebrand 123,000 Jesús Salazar 98,000 Undisclosed Grupo BBVA Jagersro Forvaltnings AB 250 Alecta Undisclosed Undisclosed Empresas Phoenix Undisclosed 15,500,000 Altira AB Cajamar Caja Rural NH Hoteles 62,000 Grupo BBVA DNB Luna Family Meliá Hotels International Rasta Group AB Kungsleden AB Wihlborgs Fastigheter AB Undisclosed Swedavia Kungsleden AB IF Metall Lararforbundet Source: HVS London ¹ Now the GPRO Valparaiso Palace & Spa CHART 14: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2014 – CONTINUED

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 14 Council Group Partners Buyer Seller (€) Price per Room Price (€) Rooms Number of Property Country Location Novotel CentralPan Pacific Heron Plaza (site)Hub by Premier Inn Brick Lane (forward funded sale of site)Marriott Hotel Grosvenor SquareTravelodge UxbridgeEnterprise HotelUrban Villa at Great West Quarter UKPembridge Palace HotelSheraton Skyline Hotel & Conference CentreWyndham Grand London Chelsea HarbourPremier Inn London Croydon Town Centre HotelHilton London Docklands RiversidePark Lane Hotel LondonTravelodge London Enfield HotelHyde Park Hotel UK UKTravelodge Stratford UKTravelodge Chessington Tolworth UKCannizaro House Hotel UK UKBermondsey Square Hotel UKKingsway Hall HotelLondon EDITION UKHoliday Inn Express Earls Court (50% interest) London Liverpool LondonNH Harrington Hall Hotel UK UK 189 UKUmi London London (Heathrow)Parkcity Hotel London LondonPark Inn by Radisson Hotel & Conference Centre London Heathrow London UK 43,600,000Savoy Hotel (50% stake) LondonPark Inn by Radisson UKHoliday Inn Manchester Airport 230,000 UK LondonTravelodge Manchester Central Arena Hotel London London UK-based Institutional Fund UK UK 350ibis Budget Manchester Quays 209Travelodge Manchester Piccadilly Hotel 190 UK UK 237Premier Inn Manchester Trafford Centre West London Undisclosed UK UKThe 16,600,000 London 122,200,000Renaissance Manchester City Centre Undisclosed 168 151,200,000 100 London UndisclosedHoliday Inn Middlesbrough (opening summer 2015) 158 UK UK 643,000Hilton Newcastle Gateshead 79,000 London London 120 638,000 UK 18,700,000Macdonald Randolph Hotel 18,900,000 UOL Group Ltd UK London Algonquin 78,700,000Travelodge at Lifeboat Quay (development) UK London Joint Treasure International Ltd 120 100Travelodge Salford Quays London London 16,400,000 378 111,000 189,000Jurys Inn 498,000 UK UK UK Mayfair Capital Investment ManagementPremier Inn Swansea City Centre Union Hanover Securities UK 31,300,000 UK 30,300,000 UK Millennium & Copthorne UK 137,000 Undisclosed 132 LondonLegacy Falcon Hotel UK Manchester Osprey Equity Fairmont St Andrews Resort Pickering Properties Ltd London 895 Undisclosed 261,000 LondonPremier Inn Development in St Andrews 303,000 Manchester 132 H.I.G. Capital 12,300,000Cedar Court Grand Hotel & Spa UK Lum Chang Chatteris DevelopmentsBrooklands Hotel 150 303 88,700,000 Manchester UK 10,900,000 Manchester Manchester 93,000 180 London Manchester Middlesbrough 68 London London 19,900,000 Undisclosed 99,000 Redefine International 80 46 Peveril Securities Hotel Capital Strategic UK 83,000 23,500,000 Undisclosed UK AXA REIM 252 32,300,000 UK 132,000 Sir Richard Sutton's Settled Estates CNM Estates Manchester 170 Undisclosed Undisclosed Host Hotels & Resorts JV ABP Redefine International 131,000 200 200 Poole UK 26,800,000 474,000 Undisclosed Undisclosed UK 173 Heron International UK Aberdeen Asset Management Undisclosed Undisclosed Barratt Homes Boustead Holding Bhd 234 Harcourt Developments UK 138 17,300,000 112,000,000 NAMA 126 210 106,000 Undisclosed Newcastle 157 Undisclosed UK Manchester Hotels Shiva Undisclosed Ability Group 195 Oxford UK 24,200,000 560,000 116 Undisclosed UK 86,000 15,100,000 Undisclosed 15,000,000 62 Abu Dhabi Investment Authority 28,900,000 Woodley Hotels (Kensington) Middle Eastern Investment Group Swansea Orchard Street Investment Management Salford Undisclosed Undisclosed 203 103,000 Andrews St 36,400,000 109,000 71,000 184,000 77,000,000 Pandox Undisclosed Southampton Hotels & Resorts Starwood Undisclosed F&C REIT JV between Fairmont Raffles Hotels and Katara Hospitality BP Pension Fund 28,100,000 Legal and General Property Purple Sky Sarl UK St Andrews 314,000 Undisclosed 1,200,000 125 York Stratford-upon-Avon Angelo, Gordon & Co. Felda Investment Corp 254 165 138,000 Banking Lloyds Hotbed (private investor syndicate) 13,600,000 Hotel Group Splendid Urban & Civic 338 47,300,000 56,500,000 Administrators TargetFollow Group Ltd BP Pension Fund 109,000 116 Pastel Estate Limited 65 Weybridge 270 112 38,600,000 Marriott International Carey Property 186,000 Charities Property Fund 342,000 83 Undisclosed UBS Igloo Regeneration (part of AVIVA Investors) 209 Westmont Hospitality 29,400,000 13,000,000 21,800,000 114,000 15,700,000 Undisclosed DTZ Investment Management Cola Holdings 253,000 WG Mitchell 40,800,000 200,000 107 81,000 140,000 Undisclosed Jolan Piccadilly Ltd Mansford Holdings Plc James's Hotel Group St Aberdeen Asset Management LaSalle Investment Management Undisclosed 195,000 QMH Ltd Undisclosed 120 Kennedy Wilson Europe Real Estate M&G Real Estate Undisclosed Undisclosed Lowy Group Undisclosed Hospitality Group Splendid Harcourt Capital LLP JV Middlesbrough 24,200,000 201,000 Morgan Stanley Marsh Life Westmont Hospitality Group and Bestford Captial & Resorts Rocco Forte Peel Land and Investments plc Cru Source: HVS London CHART 15: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2014 – CONTINUED

EUROPEAN HOTEL TRANSACTIONS 2014 | PAGE 15 About HVS

HVS is the world’s leading consul ng and services organiza on focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries. Established in 1980, the company performs 4500+ assignments each year for hotel and real estate owners, operators, and developers worldwide. HVS principals are regarded About the Authors as the leading experts in their respec ve regions of the globe. Through a network Jill Barthel is an Analyst with of more than 35 offi ces and 450 professionals, HVS provides an unparalleled range HVS London, specialising in hotel of complementary services for the . www.hvs.com valuation, feasibility studies and consultancy. A Luxembourgian, Superior results through unrivalled hospitality intelligence. Jill holds a BA (Hons) from the Glion Institute of Higher Everywhere. Education in Hospitality Finance & Revenue Management and an With offi ces in London since 1990, HVS London serves clients with interests in the E-Certificate in Hotel Real Estate Investments and UK, Europe, the Middle East and Africa (EMEA). We have appraised some 4,000 Asset Management from Cornell. She joined HVS in hotels or projects in more than 50 countries in all major markets within the EMEA 2014 after having gained experience in both region for leading hotel companies, hotel owners and developers, investment accounting and revenue management in key groups and banks. Known as one of the foremost providers of hotel valua ons and positions with Kempinski in Munich, Beijing and feasibility studies, and for our ability, experience and rela onships throughout . Since joining HVS, she has been Europe, HVS London is on the valua on panels of numerous top interna onal banks involved in several valuation and feasibility studies which fi nance hotels and por olios. in Europe and Africa.

Tel: +44 (0) 20 7878 7710 About HVS Hodges Ward EllioƩ [email protected] Adrian Ruch is an Analyst with HVS Hodges Ward Ellio is the hotel brokerage and investment banking division of HVS. HVS Hodges Ward Ellio , where Opera ng within the European marketplace, HVS Hodges Ward Ellio acts on behalf he focuses on the sale of European of its clients in the sale and fi nancing of hotels. Assignments include individual assets single and por olio assets. He joined the company in 2014, and por olios, with transac ons having been successfully concluded in most major having previously worked at UBS European markets. and PwC’s lodging and tourism consul ng prac ce, as well as at independent Swiss hotels. He speaks English, German and French and holds a BSc (Hons) in Interna onal For further informa on about the services of the London offi ce, please contact Charles Hospitality Management from Ecole hôtelière de Human on +44 20 7878 7771 or [email protected]. Lausanne with a specialisa on in real estate, market and corporate fi nance.

Tel: +44 (0) 20 7878 7778 [email protected]

www.hvs.com HVS London and HVS Hodges Ward Elliott www.hvshwe.com 7-10 Chandos St, London W1G 9DQ, UK

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