Hotel Transactions

MARCH 2016 | PRICE £500 2015 EUROPEAN HOTEL TRANSACTIONS

Dayk Balyozyan – HVS London Associate Adrian Ruch – HVS Hodges Ward Elliott Senior Associate

HVS.com HVS London and HVS Hodges Ward Elliott 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 workEUROPEAN just like the by-nc-nd HOTELlicense, but they TRANSACTIONS can also translate, make remixes, 2015 and produce | PAGEnew stories 1 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 GRITTI PALACE, VENICE, ITALY Total European hotel transaction volume for 2015 was €23.7 billion¹, marking a new record and representing an increase of 65% on 2014. This surpasses the pre-downturn levels of €20.3 billion and €18.8 billion recorded in 2006 and 2007, respectively, and increases the ten-year annual average from €10.5 billion to €11.3 billion; Starwood Hotels & Resorts sold the Gritti Palace Total portfolio transaction volume to Qatar-based Nozul Hotels & Resorts for €105 (€14.6 billion) more than doubled million. Nozul, which also owns the W Doha Hotel & compared to 2014 and single asset Residences, was represented by HVS Hodges Ward Elliott. Part of Starwood’s Luxury Collection brand, volume (€9.1 billion) also reached a new the 82-room Gritti Palace reopened in 2013 after a peak, increasing 21% on 2014; 15-month, €40 million renovation. The property dates from 1525, when it was built as the palatial residence The UK was again the strongest driver of Doge Andrea Gritti. of transaction activity, accounting for €11.4 billion or 48% of total transaction volume. Spain saw a strong increase in European investors were on a spending deal activity, recording a transaction spree with a record €10.9 billion of volume of €2 billion, double that of 2014, investment, accounting for nearly half of underpinned by further recovery in total transaction volume. Activity from the tourism sector of this once severely Middle Eastern and North American troubled economy; investors also increased by about 140% (to €4.4 billion) and 46% (to London accounted for 63% of all single €5.5 billion), respectively. asset transactions in the UK by volume. The sale of the Ace Hotel London Shoreditch by Starwood Capital to Faster, Higher, Stronger Limulus Ltd for €206/£150 million set a new price per room record in East In 2016, the 31st Summer Olympic Games London (€800,000/£581,000 per room); will take place in Brazil. The motto of the Games – faster, higher, and stronger Germany again registered the second – conveys a sense of dynamism and highest number of hotel sales, and achievement that also defines 2015’s hotel transaction volume more than doubled transaction activity: the year not only compared to 2014; broke numerous records but earned the gold medal for previously unseen total transaction volumes. In 2015, hotel transactions CHART 1: TOTAL HOTEL INVESTMENT VOLUME 2006-15 worth €23.7 billion were 25 recorded, representing an Portfolio Transactions increase of 65% on 2014, Single Asset Transactions 20 Ten‐Year Average comfortably surpassing the pre-crisis levels of €20.3 billion 15 and €18.8 billion recorded in 2006 and 2007, respectively.

€ Billions 10 These outstanding results were predominantly driven by 5 an extremely active portfolio transactions market. 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total portfolio volume (€14.6 billion) more than Source: HVS – London Office

¹Only transactions that sold for more than €7.5 million are considered in this analysis. EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 2 doubled compared to 2014, RADISSON BLU AMSTERDAM AIRPORT, THE NETHERLANDS surpassing the previous peak (€14.5 billion) recorded in 2006. Total single asset volume (€9.1 billion) also reached a new peak, representing an increase of 21% on 2014 and 53% on the pre-downturn peak recorded in 2006. These results have raised total transaction volume to previously unseen levels and pushed the ten- HVS Hodges Ward Elliott acted as the seller’s agent on the sale of the Radisson Blu Amsterdam Airport. The 246-room hotel was acquired by year annual average from Singapore-based M&L Hospitality for €43 million. €10.5 billion to €11.4 billion. Interestingly, ‘only’ some and Plateno Hotels Group merged, becoming 142,000 hotel rooms transacted in 2015, China’s largest hotel group and one of the compared to approximately 190,000 in 2014. The previous year’s results, however, were The UK was the strongest driver of somewhat skewed by Jin Jiang’s acquisition of world’s top five. transaction activity, accounting for Louvre Hotels, which involved 90,000 rooms. €11.4 billion or 48% of total transaction Strong investment demand was supported volume, more than double the activity by positive industry fundamentals as year- registered in 2014 – a development strongly on-year RevPAR growth in all but two of driven by numerous portfolio transactions. Europe’s 20 major markets continued on an Germany took second place and registered a upward trend. The impact this had on average total transaction volume of €4 billion, a rise prices per room are explored in our sister of approximately 40% on 2014 levels. publication, the 2016 HVS European Hotel Spain saw a strong increase in transaction Valuation Index. activity and recorded a total volume of Numerous mergers and acquisitions were also announced in 2015, such as Marriott’s and accounted for 10% of all hotel rooms sold acquisition of Starwood Hotels & Resorts and in€2 2015. billion, double the figure achieved in 2014, Total transaction volume in France decreased Hotels International (FRHI). These entity- slightly, with €1.6 billion registered in 2015 levelAccorHotel’s acquisitions, purchase however, of Fairmont were not Raffles included compared to €1.8 billion in 2014 (-11%). in this research given that the transactions Again, 2014’s results were somewhat skewed have not yet completed. In China, Jin Jiang by Jin Jiang’s acquisition of Louvre Hotels CHART 2: REGIONAL SHARE OF TRANSACTION (€1.2 billion), and therefore in ‘real’ terms VOLUME 2015 France recorded increased levels of both smaller portfolio deals and single asset Netherlands 2% Other 12% transactions. Italy 3% Ireland 3%

France 7% UK 48%

Spain 8%

Germany 17%

Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 3 Quarterly Activity UK HOLIDAY INN PORTFOLIO

and second quarters were more active than inThere 2014. was The a stronghighest start transaction to 2015, activity as the first was recorded in the fourth quarter of 2015, and this quarter represents more than a third of the year’s total transaction volume, mainly driven by the sale of the Holiday Inn London Kensington Forum for €473/£350 million (€522,000/£386,000 per room) in October, the sale of Host Hotels and Resorts’ European portfolio for €420 million (€182,000 per In a portfolio transaction comprising 18 properties room) in November, and the sale of a pan- (724 rooms), Cerberus Capital Management acquired European portfolio of eight Hilton-branded the second tranche of the LRG hotel portfolio from LRG. HVS advised Cerberus Capital Management and hotels for €400 million (€147,000 per room) its lender. in December. April was the strongest month of 2015, owing to the sale of the Maybourne Netherlands, with individual prices per room Collection (London’s iconic Claridge’s, as high as £971,000/€1.3 million in London Connaught and Berkeley hotels), which (the Regency Hotel, now the DoubleTree by reportedly transacted for €2.7/£2.0 billion Hilton London Kensington, which was sold (€5.1 million per room). for £100/€135 million) and €1.3 million in Venice (the Gritti Palace, which transacted for Single Assets €105 million). After an already record-breaking 2014, single Spotlight on the UK asset volume reached new heights in 2015 Once again, the UK topped the ranking in terms with year-on-year growth of 21%. Single of both portfolio and single asset transactions. asset transactions represented 38% of total transaction volume and 237 individual hotels UK sales represented 31% of European single (approximately 44,000 rooms) were sold for asset transactions with a volume of €2.9 billion €7.5 million or more. In 2014, 190 single asset (£2.2 billion), an increase of 20% on 2014. The hotel deals were recorded (37,000 rooms). UK also carved a clear gap ahead of Germany (in second place with €2 billion) and Spain (in Following a decline of 3% in 2014, the third place with €656 million). average price per room for single assets increased by 3% in 2015. The highest prices London accounted for 63% (€1.9/£1.4 billion) per room for single assets were achieved in of all single asset transactions in the UK. Italy, Switzerland, the UK, Norway and the Major deals included the sale of the Ace Hotel London Shoreditch by Starwood CHART 3: INVESTMENT VOLUME IN 2015 BY QUARTER Capital for €206/£150 million (€800,000/£581,000 per room), setting a new price per room record in East London. The St 34% of Total 24 Cumulative Ermin’s hotel was acquired 22 Singe Asset by the Chen family’s Sunrider 20 Portfolio 14% of Total 18 International for €231 million

16 27% of Total (€700,000 per room) from a joint 14 venture between Angelo Gordon, 12

€ Billions 25% of Total 10 Amerimar and Gracemark. The 8 Holiday Inn Kensington Forum 6 4 was sold by Apollo Global, 2 shortly after it acquired the 0 hotel as part of a UK portfolio, Q1 Q2 Q3 Q4 Source: HVS –2015 London Office 2015 2015 2015 to Queensgate Investment

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 4 for €473/£350 million CHART 4: SINGLE ASSET INVESTMENT VOLUME 2006-15

(€522,000/£386,000 per room). 10 250 Single Asset Transaction Volume 9 Notable transactions outside Number of Transactions London include CDL’s 8 200 acquisition of the Cambridge 7 Number of Transactions City Hotel from London & 6 150

Regional for €84/£61 million 5

(€426,000/£311,000 per € Billions 4 100 room). The Leena Group 3 acquired the Village Hotel in 2 50 Edinburgh from KSL Capital 1 Partners for €38/£26.5 million — 0 (€314,000/£221,000 per room). 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: HVS – London Office Spotlight on Germany the Radisson Blu Hotel in Hamburg, which Germany remained the second most active was bought by Azure Hotels for €150 million region in Europe with 48 sales, 23% of all (€270,000 per room); and a future 25hours single asset sales in Europe during 2015, Hotel in Munich for €120 million (€706,000 including nine hotels in Munich, eight in per room), which was purchased by Inka AG from a joint venture between Tristan Capital volume in Germany grew from €820 million Partners and Freo. We note that a number of toBerlin approximately and five in Hamburg.€2 billion (+140%).Single asset The deal the transactions recorded were developments (for example, the INNSIDE by Meliá Hamburg, Immobilien achieved the highest price, which was acquired by CPA®:18 for €180sale of million the Sofitel (€455,000 Munich per Bayerpost room). Deka,to Deka €29 million/€140,000 per room, and the Union Investment and Art-Invest Real Estate Hampton by Hilton Berlin Alexanderplatz, Management were the most active buyers, which was sold for an undisclosed sum), accounting for almost 40% of all German showing that investors are eager to become single asset transactions. more entrepreneurial in search of yield. Other notable transactions included the sale of Le Méridien in Munich for €158 million Spotlight on Spain (€415,000 per room) by Kildare Partners and On account of increases in international a Luxembourg-based administrator to Deka; demand and a continued recovery of the major European tourism economies, LONDON AND UK HOLIDAY INN PORTFOLIO hotel transactions in Spain have increased substantially in the last two years. The main focus remained on urban markets like Barcelona and Madrid. Notable single asset transactions included the Hotel Ritz in Madrid, which was acquired by a joint venture between Mandarin Oriental and the Olayan Group for €130 million (€778,000 per room), and the Holiday Inn Bernabéu in Madrid, bought by Hispania for €50.6 million (€162,000 per room) from Leading Hospitality. Recent portfolio transactions, such as the joint venture between Barceló and Apollo Global Real Estate acquired the final tranche Hispania-Azora (16 hotels with 6,097 keys) of the LRG hotel portfolio from LRG. The transaction and Meliá and Starwood Capital (six hotels comprised 22 hotels (5,178 rooms), including the Holiday Inn London Kensington Forum. HVS acted as valuers for the lenders. from international investors in the region. with 2,855 keys), confirm the strong interest

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 5 Spotlight on Italy some 70 individual portfolio transactions recorded last year (totalling approximately Nine transactions were recorded in Italy 98,000 rooms). with a total volume in excess of €630 million, most of which took place in primary cities The largest portfolio deal in 2015 was such as Rome, Milan and Venice. Three the sale of the Maybourne Collection, main transactions made up 70% of the comprising three London luxury trophy total single asset sales: the Boscolo Milano assets (Claridge’s, The Connaught and The Hotel (€101 million, €659,000 per room); Berkeley), which was acquired by the Qatar the Westin Excelsior, Rome (€222 million, Investment Authority from joint owners Sir €703,000 per room); and the Gritti Palace, David and Sir Frederick Barclay and Paddy Venice (€105 million, €1.3 million per room). McKillan. The acquisition price for the 100% With those three sales driving up the average stake in the company owning the three assets, values, Italy saw an average price per room of reported to be in the region of €2.75 billion, €381,000 in 2015. represents a price per room of more than €5 million. Spotlight on France A joint venture between Lehman Brothers In France, 19 single asset transactions (close Real Estate, Realstar and GIC (together to 2,200 rooms) were recorded, an increase ‘LRG’) further concluded the disposition of of 16% on 2014. These sales accounted for its UK hotel portfolio comprising Holiday approximately €521 million. Similar to 2014, Inn- and Crowne Plaza-branded hotels. The most transactions occurred in the Greater second tranche of 18 regional hotels was Paris area (80% of the single assets sold in acquired by Cerberus Capital Management France in 2015). Highlights in 2015 included for €310 million (€127,000 per room). Apollo MI29 Eurobail’s purchase of the Novotel Global subsequently acquired the third Tour Eiffel Hotel (former Nikko Hotel) from and last part of the portfolio comprising 22 AccorHotels for €200 million (€262,000 per hotels for €1.3 billion (€249,000 per room), room). which included several London hotels, one of which was quickly sold on to Queensgate The Year of the Portfolio Investment. Several hotel platforms also changed hands in Deal 2015. Lone Star Funds acquired the Jurys Inn In 2015 portfolio transactions accounted for portfolio of 31 hotels across the UK, Ireland €14.6 billion, or 62% of the total European and the Czech Republic for €883 million (€117,000 per room) and Hong Kong CTS as it not only represents more than double bought Kew Green Hotels comprising thetransaction portfolio volume. transaction This volumefigure is of remarkable, 2014 but 54 hotels across the UK for €569 million it also sets a new record by surpassing the (€87,000 per room). Singapore-based Frasers €14.5 billion recorded in 2006, at the peak of Hospitality acquired Malmaison and Hotel du the last cycle. A further record was achieved Vin, which includes 29 hotels across the UK, in terms of the number of portfolio sales, with for €511 million (€245,000 per room).

CHART 5: PORTFOLIO INVESTMENT VOLUME 2006-15

16 80

Portfolio Transaction Volume 14 70 Number of Transactions Number of Transactions 12 60

10 50

€ Billions 8 40

6 30

4 20

2 10

— 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 6 CHART 6: PORTFOLIO INVESTMENT BY REGION 2013-15 2013 2014 2015

Other Other 23% OtherOther 21% UK 36% 38% UK 37% France 7% France Germany UK 59% 23% Germany Germany Germany 13% 18% 20% France 5% Source: HVS – London Office

Portfolio Investment by Region Private equity investors accounted for a particularly large share of portfolio Once more, the UK was top in terms of acquisitions (39%), but also showed keen portfolio transactions with a total portfolio interest in single assets (10%). This includes volume of €8.6 billion, more than three times the amount recorded in 2014 and portfolio of 22 hotels across the UK for representing 59% of total European portfolio €1.3firms billion), such as LoneApollo Star Global Funds (acquired (acquired a transaction volume for the year. Although a portfolio of 31 Jurys Inn hotels across Germany’s share of total European portfolio the UK, Ireland and Czech Republic for volume (13%) decreased, the absolute £680/€883 million), and Starwood Capital amount (€1.9 billion) represents an increase of 40% on 2014 levels. France also recorded across Europe). strong portfolio transaction activity with a (acquired five portfolios of 23 hotels overall total volume of just over €1 billion, double Institutional investors were also active the amount registered in 2014 (after the with sovereign wealth funds accounting for exclusion of Jin Jiang’s acquisition of Louvre approximately a quarter of both portfolio Hotels). buyers and single asset purchasers. This included the acquisition of a portfolio of eight Hilton hotels by the Oman Investment Buyers Fund (€400 million) and the purchase of Private equity companies are showing the Maybourne Collection by the Qatar sustained interest in hotels as they Investment Authority (£2/€2.75 billion). represented almost 28% of the total volume, Real estate investors continued to diversify followed by institutional investors (25%), their portfolios into hotels and represented real estate investment companies (18%) and 26% of the investment volume in single hotel operators (16%). assets and 13% in portfolios. The biggest acquisitions by real CHART 7: BUYER TYPES IN 2015 – SINGLE ASSET SALES VERSUS PORTFOLIO estate investors in Other 2015 were the the Single Assets 5% Portfolio Undisclosed 4% Ace Hotel in London by Limulus Ltd

HNWIs (£150/€206 million) 11% Institutional and several portfolio Hotel Investment Institutional Investors Companies 12% Investors 25% 25% purchases by Private Equity Hispania Activos Real Estate 39% Inmobiliarios. Investment Hotel Private Equity Companies Owner‐ Real Estate 10% After being very 26% Operators Investment 18% Companies busy in 2014 (Jin Hotel Owner‐ 13% Operators 12% Jiang’s acquisition of Louvre Hotels Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 7 CROWNE PLAZA AMSTERDAM CITY CENTRE, THE London Kensington Forum. Investment from NETHERLANDS the Middle East also increased, representing 19% of total sales, but did not reach 2013 levels, which included several acquisitions of upscale and luxury assets in London and Paris.

Sellers Real estate investment companies made up the largest seller segment for both portfolio and single asset deals. Notable portfolio dispositions by these sellers include LRG’s YC Amsterdam BV acquired the 270-room Crowne sale of 40 Holiday Inn- and Crowne Plaza- Plaza Amsterdam City Centre from Host Hotels & branded hotels across the UK, sold in two Resorts for €103.5 million. HVS Hodges Ward Elliott tranches. Additionally, the Berkeley Group acted as the seller’s broker in this transaction. The hotel will undergo a full renovation and will open in sold an nhow hotel development in London 2017 as a Kimpton hotel, becoming the first Kimpton- to AXA IM for €126 million (€664,000 per branded property outside of the Americas. room). The largest single asset disposition by an Group, for example), hotel owner-operators institutional investor was Invesco’s sale continued to be active in 2015, accounting for of the Radisson Blu Hamburg to Azure for 12% of single asset investment volume and €150 million (€270,000 per room). Credit 18% of portfolio volume. Major transactions Suisse’s Hospitality Fund sold the Hotel include Accor’s acquisition of 43 hotels from Palace Luzern to Asian-based Yunfeng Gao for Foncière des Régions (€281 million) and the €46 million (€338,000 per room). acquisition by China-based Hong Kong CTS Hotel owner-operators were also active of Kew Green Hotels, comprising 54 hotels sellers: the Moran Hotel Group sold nine across the UK(£400/€569 million). properties to Dalata Hotel Group for Investment by Region €455 million (€200,000 per room) and Fattal and the Leopard Group sold a portfolio Transaction volume from European investors of 18 hotels to Pandox for €400 million accounted for almost 46% of overall (€117,000 per room). Starwood Hotels & investments, similar to 2013 levels. These Resorts was an active seller of trophy assets, buyers mainly sought well-established, including the Westin Excelsior Rome to branded hotels in mature markets (such as Katara Hospitality and the Gritti Palace in the Novotel Tour Eiffel in Paris CHART 8: INVESTOR ORIGIN BY REGION 2010-15 or Le Méridien in Munich). North 25,000 Americanand the Sofitel investment Munich accounted Bayerpost for 23% of total volume in 2015, down 3%, but in absolute terms 20,000 it increased by almost 50%, showing that these investors remain keen to deploy capital 15,000 Undisclosed outside of North America. Asian Africa Asia investment increased by 11% € Billions 10,000 Middle East on account of continued strong North America interest from Asian buyers Europe such as Singapore-based M&L 5,000 Hospitality, which acquired assets in the UK, Belgium and the Netherlands, or Queensgate, 0 which acquired the Holiday Inn 2010 2011 2012 2013 2014 2015 Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 8 CHART 9: SELLER TYPES IN 2015

Portfolio Single Asset

Bank 6% HNWI Other 5% Other 6% 10% Real Estate Real Estate Investment Institutional Investment Company 24% Investor Company Private Equity 10% 26% 16% Hotel Owner‐ Undisclosed Operator 18% 11% Hotel Owner‐ Institutional Operator Investor 5% Hotel Investment 19% Private Equity Company 25% 19%

Source: HVS – London Office

Venice to Nozul Hotels & Resorts. Belmond would expect 2016 to continue to see strong and Landis Inversiones sold the Hotel Ritz in investor demand. Given the UK’s recent Madrid. dominance within the European transactions landscape, attention in the current year is While private equity houses were net buyers, likely to shift further to other markets such notable dispositions included Apollo Global’s as Germany, France and Benelux. Concerns sale of the Holiday Inn London Kensington about a potential lack of supply are somewhat Forum to Queensgate Investment. KSL Capital mitigated by the fact that acquisitions made Partners sold its Malmaison and Hotel du Vin at the beginning of the current cycle are portfolio to Frasers Hospitality. Mount Kellett Capital Management, Ulster Bank, Westmont While 2016 might not turn out to top 2015, Hospitality Group and Avestus Capital nonearing immediate the end slowdown of a five-year is in holdingsight as period.the Partners (shareholders of Jurys Inn) sold the fourth quarter of 2015 accounted for a third Jurys Inn portfolio of 31 UK assets to Lone of the year’s total transaction volume, and Star Funds. this momentum is expected to spill over into 2016. Indeed, 2016 has already seen several

Conclusion and Outlook of two Club Quarters hotels in London by 2015 was a truly outstanding year for significant transactions, such as the purchase hotel deals, leading to new records for €245/£180 million (€524,000/£385,000 per both portfolio and single asset transaction AXA and ATP from Chelsfield Partners for levels. Attracted by continued RevPAR 2016 include the two Hilton Metropole hotels growth in most major European markets, inkey). London Other and ongoing Birmingham, high-profile the newsales Hilton for at investors turned eagerly to the hotel sector. Schiphol Airport in Amsterdam, the Park Inn Interest stayed strong as hotels remained a Berlin Alexanderplatz, the Hilton Athens and comparatively attractive investment class, the Le Méridien Etoile in Paris. presenting investors with the necessary sector knowledge and the opportunity to – HVS – achieve higher investment yields than other property types. The search for yields, which in 2015 was exacerbated by low interest rates, downward pressure on stocktakes and global political turmoil, will continue with keen interest from within Europe, but especially from the Middle East and Asia. Despite current economic woes and increased volatility in the stock markets, there is no immediate end in sight for interest in the hotel sector, as underlying operating fundamentals are trending upwards and we

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 9 p Group International roup (Managed by Hesperia) ilien AG Hotels Leopard Group & Fattal Hotels JV: Migdal Insurance, Liberty Properties, Menora Mivtachim, Amitim & Tshuva Grou Invesco Motel One Nordic Hotels AG Carlyle Best Hotel Properties B&B Moran Hotel Group AccorHotels TAG Immob Aspria Benchmark RE Dev Aurelius Holding Foncière des Régions Deutsche AWM‐Germany ESAF Greece's Privatization Agency Host Hotels & Resorts' European Joint Venture Seller Undisclosed Undisclosed DG Anlage SCSP Lone Star Funds Undisclosed IVG Institutional Funds GmbH Deka Immobilien Gerpro Elbit Imaging Ltd Undisclosed Meliá Hotels International Note: JV = Joint Venture JV: TUI & Orbita Provinzial Meliá Hotels NH Hotels G Marina Hotels Dunas Grupo JV: Morgan Stanley & Paris Inn Undisclosed Apollo Global RE Barcelo Hotels & Resorts Barcelo Hotels & Resorts & KIC Savills Investment Management natha Murs fe REIM ière des Régions ) I Hotels Management DL spania ofinimmo wiss Life REIM OBO Club deal fund eel Hotel Group ermyn Street Real Estate Fund Hispania (via its Subsidiary Hispania Real SOCIMI, SAU JV: Benson Elliott & Walton Street Captial, in Partnership with Algonquin Buyer ) € ed Allsun Hotels ( sed Louvre Hotels Group 000 Algonquin & KKR ,000 AccorHotels 00,000 Minor Hotel Group Price per Room ndisclosed Undisclosed Undisclosed B&B Hotels 0 168,000 00 124,000 First Sponsor Group Ltd closed Undisclosed Medplaya Price (€) ,000,000 93,000 AccorHotels disclosed Undisclosed BNP Paribas REIM Germany 47,800,000 75,000 IFA Hotels 9 455,000,000 200,000 Dalata Hotel Group 9 56,000,000 376,000 Nova Hotels 48 Undisclosed Undisclosed NorthStar Realty Finance ,415 400,000,000 117,000 Pandox AB No. of Rooms 1 181 Undisclosed Undisclosed Patrizia Immobilien AG 2 67 54,000,000 806,000 C 6 689 Undisclosed Undisclosed Art Invest 1 231 Undisclosed Undisclosed TLG Immobilien 9 739 Undisclosed Undisclosed Fonc 1 160 Undisclosed Undisclosed Corpus Sireo 2 294 Un 82 2,309 420,000,000 500 Undisclosed 182,000 Undisclosed JV: Brookfield Property Partners 2 443 55,000,0 6 1,176 152,000,000 129,000 AccorHotels 3 343 400,000,000 1,200,000 J 2 146 Undisclosed U 2 5 2 519 Undisclosed Undisclosed H10 Hotels 6 472 360,000,000 763,000 Groupe Mara 42 1,178 14 118,000,000 1 2 137 10,000,000 73,000 Swiss Li 2 306 48,000,000 157, 22 610 625 Undis 105,000,00 9 2,27 3 400 Undisclosed Undisclosed S 2 625 105,000,000 168,000 Hispania 5 2,151 Undisclosed Undisclosed Hispania 2 175 27,900,000 159,000 Hispania 6 2,855 176,000,000 62,000 Starwood Capital Group 2 640 7 2,933 176,000,000 60,000 Starwood Capital 6 1,200 Undisclosed Undisclosed F 4 818 76 2 480 Undisclosed Undisclos 2 245 Undisclosed 4 1,183 75,000,000 63,000 Hi 18 3,415 200,000,000 59,000 Fattal Hotels 25 1,816 Undisclosed Undisclo 22 2,271 128,000,000 56,000 Foncière des 18 3 43 4,237 281,000,000 66 11 3,946 Undisclosed Undisclosed Hispania 12 1,915 Undisclosed Undisclosed LFP No. of Hotels lands 29 3,354 209,000,000 62,000 Event Hotel Group y any many pain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain S Spain Spain Spain Spain ermany France France France France France Austria Greece Belgium Country Slovakia Portugal Germany Germany Germany G Germany Germany Germany Germany Germ Germany Ger Germany German Ireland, UK Switzerland Netherlands Germany, Belgium Germany, Belgium, France, Italy, Poland, Germany, Nether Italy, Netherlands, Germany, erteventura Paris Berlin Berlin Leipzig Leipzig Athens Various Various Various Various Various Various Various Munich Various Various Various Various Various Various Various Various Various Hanover Antwerp Location Mallorca Stuttgart Paris, Nice Düsseldorf Amsterdam Fuerteventura Mallorca, Ibiza Lisbon, Algarve Valencia, Alicante Hanover, Hamburg Malaga, Lanzerote, Benidorm, Sinemorets Corralejo (Fuerteventura) Madrid, Barcelona, Seville Paris, Venice, Milan, Rome, Gran Canaria, Fuerteventura Fuerteventura, Ibiza, Majorca Warsaw, Nuremberg, Brussels Costa Daurada, Fu Hesperia Ramblas, Vincci Málaga Rome, Den Haag, Munich, Vienna, Nordic Hotels Portoflio German, Belgian and Swiss Hotel Portfolio Motel One Portfolio B&B Hotels Stuttgarter Südtor Quartier (Mixed‐Use Incl. 1 Hotel) B&B Portfolio 16 Leonardo Hotels & 2 Holiday Inns in Germany Aurelius DE Munich Hotel Portfolio DG Anlage Office Portfolio (Mixed‐Use Incl. 1 Hotel) Leipzig Museumsquartier (2 ibis Properties) Aspria Resorts 2015 Stella Portfolio 2015 (Mixed‐Use Incl. 1 Hotel) Tivoli Hotels Portugal Best Hotel Properties SK Hotel Portfolio 2016 Medplaya Hotel Portfolio 2015 Two Atlantis Hotels Quartier Potsdamer Platz (Grand Hyatt & Mandala Hotel) Trias Portfolio (Mixed‐Use, 2 Hotels in Germany) Arena Towers Holiday Inn Hotels Moran Hotel Portfolio (5 Ireland & 4 UK) Invesco Pan‐European Portfolio HRADF/NBG Hotel Portfolio Portfolio Accor DE/NL Portfolio 2015 (18 DE, 11 NL) Host Hotels & Resorts' European Portfolio 2 Campanile Properties Alliance Portfolio Paris Inn Group Portfolio Hotels du Roy Radisson Blu & Park Inn Antwerp H10 Cambrils Playa & Apartamentos Las Palmeras 43 Foncière des Règions Hotels Grand Hotel Atlantis Bahia & Suite Hotel Atlantis Hotel Catarina & Altamarena Hesperia Ramblas & Vincci Málaga DAWM Spain Hotel Portoflio Meliá Hotels Source: HVS London Meliá Resorts (80% stake) Barcelo Hotel & Retail Portfolio Part 1 (Mixed‐Use) Sumba Hotel & Borneo Hotel Marina Hoteles B&B Spain Hotel Portfolio Barcelo Hotel & Retail Portfolio Part 2 (Mixed‐Use) Dunas Spain Hotel Portfolio CHART 10: EUROPEAN PORTFOLIO TRANSACTIONS 2015 2015 TRANSACTIONS PORTFOLIO EUROPEAN 10: CHART

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 10 ls) ls Holdings pest Capital tment isclosed Blackstone Swire Properties Hote Und Bank Administrators Feathers Group M&G Real Estate Seller JV: Westmont & Buda Maybourne Hotel Group, Paddy McKillen JV: Lehman Brothers Real Estate, Realstar & GIC Real Estate Brian Shone & Terence Taylor (of Oceana Hote LaSalle Inves Shiva Hotels JV: Lehman Brothers Real Estate, Realstar & GIC Real Estate Koller Family Note: JV = Joint Venture The Hotel Collection Bruntwood KSL Capital Partners Goldman Sachs & TPG Special Situations Partners Patron Capital & RBS AccorHotels Shareholders of Jurys Inn (Mount Kellett Capital Management, Ulster Bank, Westmont Hospitality Group & Avestus Capital Partners) Peter Taylor Moorfield Group Ltd Duff & Phelps s & FICO Hotels Co. et Investment Management M&G Real Estate Group of Investors s Capital Management Hospitality thon Asset Management llo Global Real Estate ar Investment Authority Buyer Lone Star Funds Starboard Hotels (5 UK) Cannock Investments JV Hetherly Capital Partners (1 UK, 1 IR) ) € ( losed Britannia Hotels 84,000 M&L Hospitality isclosed Starwood Capital Group Price per Room Price (€) ,900,000 117,000 Lone Star Funds No. of Rooms 4 265 51,300,000 194,000 Frasers Hospitality 4 650 267,500,000 411,000 Starwood Capital Group 2 219 22,900,000 105,000 Moorfield Group 1 120 Undisclosed Undisclosed Legal & General Property 5 1,2004 219,800,0002 561 183,000 Marathon Asset Management 8 Undisclosed 232 Undisclosed 1,107 Starwood Capital Group 30,200,000 84,600,000 130,000 Mara 76,000 Kennedy Wilson Europe Real Estate 8 724 84,400,000 117,000 Topland 3 283 22,000,000 78,000 Qatar‐Based 4 173 12,000,000 69,000 David Samuel Properties 2 326 60,000,000 1 7 708 32,600,000 46,000 8 2,713 400,000,000 147,000 Oman Investment Fund 2 222 Undisclosed Undisc 5 524 76,000,000 145,000 Orchard Stre 2 1493 Undisclosed 538 Und 2,748,000,000 5,100,000 Qat 54 6,569 568,700,000 87,000 Hong Kong CTS 10 1,192 Undisclosed Undisclosed JV: Highgate Hotels & Goldman Sach 26 2,665 216,000,000 81,000 JV Singha Estate 63 5,804 Undisclosed Undisclosed 18 2,443 310,000,000 127,000 Cerberu 29 2,082 511,100,000 245,000 Frasers 22 5,178 1,291,000,000 249,000 Apo No. of Hotels K UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK U Country UK, Ireland Luxembourg Germany, France, Republic, Romania Austria, Hungary, Czech UK, Ireland, Czech Republic 31 7,523 882 Switzerland, Spain, Belgium, UK, France, Spain, Germany, e p ool g hton g Derby London London Various Various Various Various Various Various Various Various Various Various Bri Location Coventry Manchester Birmingham Bournemouth London Brid Coldfield, Liver Bristol, Manchester Glasgow, Edinburgh Buxton, Basingstoke Newcastle, Fleet, Sutton Manchester, Birmingham West, Nottingham, Cardiff Bristol, Cheltenham, Exeter, Crawley, Leicester, Sheffield, Glasgow, Leeds, Birmingham, Bedford, Harlow, Birmingham Bridge, Bermondsey Street and Plymouth, Birmingham, Dublin, Preston, Manchester, Liverpool, Northampton, Lakeside, Telford, Aparthotels at Earls Court, Tower Portfolio Lasalle Investment Birmingham Portfolio (Mixed‐Use) Four Former Think Apartments The Hotel Collection Three Oceana Hotels Avon Gorge, Montpellier Chapter, Magdalen Chapter & Hotel Seattle Derby Riverlights The Town House Collection Five Former Mint Hotels Feathers Group LRG 2 (Silk Portfolio) Malmaison Hotel du Vin Kew Green Hotels Maybourne Hotel Collection London Extended Stay & Residential Portfolio (Mixed‐Use) Bruntwood Manchester Hotel Portfolio Two UK Ramadas Park Inn Loan Portfolio Jupiter Hotels LRG 3 (Ribbon Portfolio) Premier Inn Portfolio Source: HVS London Project Laser (Mixed‐Use) Compass Portfolio 2015 K+K Hotels Portoflio Seven ibis Hotels (5 UK & 2 Ireland) Jurys Inn Portfolio Hilton Portfolio CHART 11: EUROPEAN PORTFOLIO TRANSACTIONS 2015 – CONTINUED – 2015 TRANSACTIONS PORTFOLIO EUROPEAN 11: CHART

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 11 M ix Group Group h d e SARL ment p ef Hotels Realitaetenentwicklung AG dox Pan E&P Real Estate GBI AG Seller Undisclosed Undisclosed Ebertz & Partner Blackstone Soldo family Galaren Invest BV Undisclosed AccorHotels Guesthous Grauel Coonstultants Gmbh IBRC Undisclosed Kildare Partners Invesco Union Investment Note: JV = Joint Venture Undisclosed CIP NV Halmtorvet 29 A/S Pierre & Vacances Louvre Hotels Aguirre Newman Undisclosed Deka Immobilien GBI AG UniCredit ‐ Austria S IMMO AG CA Immo Ivan Chadima and Peter Joseph Donnelly SAS Hibernia France Grupo Majestic Algonquin International Real Estate plc CA Immo GE Capital Marriott International JV: Pramerica & Paris Inn Group Undisclosed AccorHotels JV: Pramerica & Paris Inn Undisclosed Undisclosed Plaza Berlin GbR Undisclosed Deutsche Immobilien AG Accor UBM Undisclosed Property firm owned by Warimpex Finanz‐Und Beteiligungs AG & UB Develo aik Invest Lambert Holding Gmb Hochti JV: Atenor Group, Eiffage Group & Bes Paris Inn Group Undisclosed Financiere EOS tners rs or GmbH & Co. KG & Nouvel Habitat S Invest al Estate ry Brothers Pivac ature sed ea Promotion & Inovallis Caisse D'Epargne tels osed apital As Streit els Group sclosed eus Capital Partners (in partnership with 123Venture) Undisclose olt Hotels upe Marvin ‐Invest Real Estate Management La Francaise RE Managers OBO ERAFP Buyer Union Investment Terra‐Contor‐Verwaltungsgesellschaft mbH Invesco RE Prime City Corpus Sireo Art‐Invest Real Estate Management Deka Immobilien Azure Hotels UK & European Investments Hoteldev Esprit de France ) 0 0 0 0 0 0 0 0 0 € ed Novum Group ( sed Perseus Capital Partners 000 Undisclosed ,000 Deka Immobilien osed Groupe Arthus‐Bertrand losed Undisclosed closed Deutsche Immobilien Invest GmbH 80,000 ImmobilienWerte Hamburg 254,00 138,00 202,00 118,00 113,00 118,00 215,00 270,00 234,00 Price per Room disclosed Art‐Invest Real Estate Management disclosed Eaglestone disclosed Connect Real Estate Group Undisclosed M&L Hospitality Undisclosed BECKEN Development GmbH 0 0 0 0 0 0 0 0 0 0 0 220,000 Extend AM 0 171,000 JV: Eternam & Paris Inn Group d Undisclosed Eternam 0,00 Price (€) ,000,000 262,000 MI29 Eurobail 27 Undisclosed Undisclosed Perseus Capital Par 50 Undisclosed Undiscl 53 14,900,000 281,000 87 Undisclosed Undisclosed Marx City Invest 48 8,200,00 98 Undisclosed Undisclosed Undisclo 33 Undisclosed Undisclosed Gro 40 Undisclose 95 Undisclosed Un 56 Undisclosed Undisclosed Besse Sign 50 Undisclosed Undisclosed Extend AM 78 Undisclosed Undisclosed Mar 29 25,000,000 862,000 Xavier Niel 72 13,100,000 182,000 96 Undisclosed Undisclosed Pers 87 Undisclosed Undisclosed 48 Undisclosed Undisclosed Undiscl 50 11,000,00 50 Undisclosed Undisclo 79 Undisclosed Undisclos 192 Undisclosed Undisclosed JV: AccorHotels 222 Undisclosed Undis 135 Undisclosed U ndisclosed Undisclosed 108 Undisclosed Undisclosed HB1 Ho 183 14,60 170300 20,000,00 Undisclosed Un 278 65,000,00 131 Undisclosed 424 Undisclosed Undisclosed Motel One 181155 39,000,00 Undisclosed Undisclosed SaWe 344145 Undisclosed 20,000,00 Undisclosed Union Investment 160 18,000,00 204 13,600,000133 67,000 15,500,000 Van Der Valk 117,000 Foncière des Mu 364 92,500,00 556 150,000,00 159 Undisclosed Undisclosed Immo KAG 124 Undisclosed Undisclosed Blackbear Re 370 81,800,000 221,000 KLP Eiendom A 104 Undisclosed Undisclosed235 Meat Indust Undisclosed Undisc 291 26,000,000 89,000170 JV: Cors 24,250,000 143, 275 Undisclosed Undisclosed Art 251179 35,000,000 53,000,000 139 296,000 Warburg‐HIH 520 Undisclosed Un 196 Undisclosed Undisclosed Le Hot 764 200 195 Undisclosed Undisclosed Undi 557 105,000,000 189,000 Union Investment 142 Undisclosed 111 Undisclosed Undisclosed Jurgen 246 29,000,00 280 46,000,000 164,000 Eften C 389 78,500,00 Rooms Number of lin Paris Paris Paris Paris Paris Paris Paris Paris Paris Paris Paris Paris Plzen Essen Berlin Berlin Berlin Berlin Berlin Berlin Ber Berlin Berlin Nancy Tallinn Arcueil Vienna Vienna Prague Prague Leuven Corsica Gromitz Mégève Cologne Cologne Cologne Brussels Brussels Location Antwerp Erlangen Hamburg Hamburg Frankfurt Frankfurt Frankfurt Innsbruck Bensheim Dubrovnik Düsseldorf Düsseldorf Düsseldorf Courbevoie Bad Bleiberg Copenhagen Sankt Kanzian Saint‐Raphael Gelsenkirchen rance France France France France France France France France France France France France Saint‐Martin‐de‐Belleville France France France France France France F Austria Austria Austria Austria Austria Croatia Estonia Belgium Country Belgium Belgium Belgium Denmark Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Czech Republic Czech Republic Czech Republic Center Parcs Vienne Grand Ouest Bleibergerhof Ramada Inn Seehotel Klopein Hampton by Hilton Berlin Alexanderplatz (Development) Ramada Hotel Berlin Mitte Hotel Albrechtshof SMARTments business Berlin Prenzlauer Berg Mercure Hotel Düsseldorf Seestern Novotel Erlangen Hotel Arosa Le Méridien Parkhotel Frankfurt Scandic Hotel Radisson Blu Sky Hotel Club Med Sant'Ambroggio Hotel Rives de Paris L’Alpaga Thiers tower Meliá Berlin Berlin Plaza Hotel Am Kurfurstendamm Radisson Blu Hotel, Hamburg Hotel a‐ja Groemitz Das Resort InterCityHotel Gelsenkirchen Pullman Hotel Cologne Motel One B&B Hotel Adina Aparthotel development at Frankfurt Europaviertel Hotel Savigny Hamburg Marriott Hotel Source: HVS London Courtyard by Marriott Vienna Messe Scandic Antwerp Park Inn by Radisson Brussels Midi Sheraton Brussels Hotel & Towers Park Inn Leuven Petka Hotel Diplomat Center Hotel Yasmin Europort Airport Center Novotel Tour Eiffel Hotel (former Hotel Nikko) Property Amaryl City‐Hotel am Kurfürstendamm Swissôtel Düsseldorf InterCityHotel Wien Courtyard by Marriott Paris Arcueil Hotel Montalembert Hôtel Franklin‐Montreuil Villa Mazarin Best Western Premier Opéra Liège Golden Tulip Marne La Vallee Golden Tulip Hotel Kronprinz Hotel ibis Convention Hotel Royal Garden Champs‐Élysées Hotel Champlain (now Hotel Mercure Paris Saint Lazare Monceau) Best Western Premier 61 Paris Nation Hotel Best Western Premier Louvre Saint‐Honoré Chalet‐hotel Le Kaya Hotel Les Roches Rouges Tobbaccon Hotel andel's Hotel SAS Radisson Hotel CHART 12: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2015 TRANSACTIONS HOTEL ASSET SINGLE EUROPEAN 12: CHART

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 12 nt Venture emir on Moltke t amily o Finanziario zman f Bank ed Irish Banks plc MA eni Stabili SpA EFD Investment Partners BV / The Vincent Hotel G roup (TVHG) Avinor AS DNB Note: JV = Joint Venture WGF AG Nedstede Groep BV Host Hotels & Resorts' European Joi Nedstede Groep BV Monri Dutch Governmen De Key InterContinental Hotels Group Starwood Hotels & Resorts Liran Wi Timeless Investments Immobiliare Galileo Srl Private UK Pension Fund Undisclosed Starwood Hotels & Resorts Hit d.d. Schiphol Park Rijk Investments B.V. JV: Tristan Capital Partners & Freo Undisclosed Undisclosed Undisclosed Glenkerrin Group Seller Hochtief NA London & Regional Jim Staunton Undisclosed Shane Connolly & John Glynn Tom Coyle David Shubotham & Martin Naughten B Aldrovandi Villa Borghese hotel Kildare Partners and a Luxembourg‐based administrator Aurelius Holding E&P Real Estate DG Anlage Undisclosed FBD Hotels John Lally Whitbread Alli InterContinental Hotels Group CIB JV: Von der Heyden Development & Atlant Capital SA Aurelius Holding Undisclosed Euro Ejendomme Unipol Grupp Investa Immobiliengruppe Undisclosed AccorHotels TAG Immobilien AG Klaus‐Dieter Graf v Von Jutrezenka F Undisclosed JV: Ali Özdemir & Zafer Özd d ) p ce astgoed roup lien oer Group Group tality Hotels Hospitality Group otel Group orm Vastgoed obilien Immobilien artnership Immobilien s Holding A S ) sclosed ig & Heisig os Stathis Zech Hotel Holding & Linnemann Hotel Holding GmbH aik Invest hlossbräu Mariakirchen GmbH & Co. KG ifco Hotel Group NTERNOS Global Investors Undisclosed Buyer Swiss Life John Malone Partnership (a consortium including Paul Higgens an Lalco Kaiserbad Bansin Hotelbetriebsgesellschaft mbh ) d UBM Realitaetenentwicklung AG € ed Art‐Invest Real Estate Management ( sed Petter Stordalen sed HR Group closed Novum Group 148,000 Corum AM 175,000 M&L Hospitality Price per Room Undisclosed Patrizia Immobilien 000 344,000 O.G. Ottersland 00,000 383,000 YC Amsterdam BV Price (€) 1,300,000 438,000 Rosewood Hotels, CTF Development Undisclosed Undisclosed Fattal Hotels 90 21,190,000 235,000 Van der Vorm V 92 28,000,000 304,000 Westmont 51 18,200,000 357,000 Van der V 82 105,000,00 0 1,280,000 Nozul Hotels & Resorts 46 9,800,000 213,000 iNua P 94 Undisclosed Undis 51 Undisclosed Undisclosed Undi 36 17,500,000 486,000 Tetrarch Capital 88 Undisclosed Undisclosed Sc 270 103,5 117 18,000,000 154,000 Rocco Veenb 170 20,200,000 119,000 I 500 172,000, 214246 29,300,000140 43,000,000 137,000 6 Petr 503 Undisclosed Undisclo 130 20,500,000316 158,000 222,000,000 Fattal Hotels 703,000 Katara Hospi 202325 50,000,000 Undisclosed 248,000 Undisclosed hausInvest europa (CGI 241 Undisclosed207 Undisclos 29,000,000231 140,000 23,800,000 CPA®:18 103,000 TLG Imm 314 46,400,000 315 Undisclosed Undisclosed108 Finint Undisclosed125 Undisclosed Dogu 23,500,000 188,000 INTERNOS Global Investors 157 11,700,000110 75,000 Undisclosed Dalata Hotel Undisclosed Allegroitalia 195104 20,000,000 10,500,000 103,000 Dalata Hotel Grou 101,000 Dalata Hotel Group 317 32,000,000 10 1,000 CPI Property Group 156 12,600,000 81,000 JV: 396381 180,000,000 158,000,000 455,000 Deka 415,000 Deka Immobi 111 13,000,000 117,000 Dalata Hotel Group 290354 76,000,000 Undisclosed Undisclosed 262,000 CPA®:18 122 Undisclosed Undisc losed Oliver Hurler Gmbh & Co. Grundstücks KG 103 14,000,000 136,000 Martin Shaw 181 34,400,000 190,000 Patrizia 132 Undisclosed Undisclosed Pyramid H 113 10,500,000154 93,00 0 101,500,000 Comer Group 659,000 Undisclosed 170 120,000,000 70 6,000 Inka AG 231 19,000,000 82,000 Undisclosed 163155 11,000,000 11,000,000 67,000 Irish Life Assuran 71,000162 Kirkl and Investments Ltd 13,115,000 81,000 Dalata Hotel 127 Undisc losed Undisclosed CG Gruppe 302220 Undisclosed168114 Undisclose Undisclosed Undisclosed220 Undisclosed Heis Undisclosed Undisclosed 191 35,100,000 184,000 Dalata Hotel G 252 Undisclosed Undisclo 120 Undisclosed Undisclosed T 197 Undisclosed Undisclosed Rooms Number of burg Olso Olso Cork Cork Sligo Turin Heviz Przno Milan Milan Milan Rome Rome Rome Dublin Dublin Dublin Dublin Dublin Dublin Dublin Venice Rimini Leipzig Dublin Galway Galway Munich Munich Munich Munich Munich Munich Munich Munich Munich Utrecht Hanover Hanover Kilkenny Münster Location Wexford Stuttgart Stuttgart Hamburg Hamburg Ham Maynooth Offenbach The Hague Hoofddorp Remscheid Oberstdorf Amsterdam Amsterdam Amsterdam Amsterdam Amsterdam Oberhausen Rottach‐Egern Italy Italy Italy Italy Italy Italy Italy Italy Italy Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Ireland Norway Norway Country Hungary Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Netherlands Netherlands Netherlands Netherlands Netherlands Netherlands Netherlands Netherlands Montenegro Source: HVS London Apollo Hotel Radisson Blu Airport Hotel, Oslo Gardemoen Clarion Hotel Royal Christiania Novotel Schiphol Airport Hotel Hotel Des Indes Cornelisz Hotel Crowne Plaza Amsterdam City Centre Lloyd Hotel Savoia Hotel Gritti Palace, A Luxury Collection Hotel Maestral Resort & Casino Radisson Blu Amsterdam Airport Palace of Justice (hotel redevelopment) Hotel Hermitage Aldrovandi Villa Borghese Holiday Inn Rome – Eur Parco Dei Medici Westin Excelsior Rome NH Santo Stefano Mercure Hotel Hannover‐Mitte Leipzig Marriott Hotel Sofitel Munich Bayerpost Le Méridien Munich Hilton Dublin Kilmainham Tara Towers Hotel Westin Dublin Kilkenny Hibernian Hotel Glenroyal Hotel & Leisure Club Clarion Hotel Sligo Whites of Wexford Hotel Brun Boscolo Milano Hotel 25hours Hotel Munich (Development) Sofitel Hamburg Alter Wall Height3 INNSIDE by Meliá Hamburg (forward‐funded development) Ghotel Hannover‐Kleefeld Temple Bar Hotel Stauntons on the Green Premier Inn Dublin Airport The Dawson Clayton Hotel Pillo Hotel Marriott Munich White Tower Hotel Complex Holiday Inn Express Munich Property Leonardo Hotel Munchen‐Neuperlach (development) Super 8 development in Laim District Ghotel Munich‐Zentrum Mercure Hotel Muenster City Clarion Hotel Cork Castlemartyr Resort InterContinental Dublin Mercure am Centro Oberhausen Park Inn Stuttgart Lotus Therme Heviz Alpenhotel Oberstdorf Macrander Best Western Hotel Offenbach Hotel Remscheider Hof Park‐Hotel Egerner Höfe Pullman Stuttgart Fontana CHART 13: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2015 – CONTINUED – 2015 TRANSACTIONS HOTEL ASSET SINGLE EUROPEAN 13: CHART

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 13 ung AG dings & Landis Inversiones Property Holdings rs nanz x Holding tone RE Advisers nmuebles SL losed haus Flims AG l Urbis isclosed ding Hospitality Hudson Advisors UK OBO Dawnay Day Group & Shore Capital Group affan Properties ndisclosed Corners Administrato JV: K/S Panora Hotel Acron Holding AG Undisclosed Administrators to Lewis Inchydoney Partnership Banco Sabadell Invesco Real Estate Alexander Hult CS REF Hospitality AST Construction Tourism Trade and Industry Co. Und Equity I Undisclosed Rafael Hotels Saint Croi JV: Home Properties AB & AB I nvest A/A AccorHotels Kenan Sakallıoglu Oceana Hotels Undisclosed Undisclosed Undisclosed Wald CS REF Hospitality Cubex Land Lone Star Funds U Meliá Hotels International Bandirma Municipalit JV: Lamron Developments & TA Fisher Group Undisclosed Gr Note: JV = Joint Venture Administrators (KPMG) Undisclosed ANS Hartmann Undisclosed Undisc Deeley Freed Estates Undisclosed Reya Warimpex Fi JV: Belmond Spanish Hol Seller Undisclosed Selecta Undisclosed In administration (Grupo Serhs) Solvasa Hoteles Undisclosed Lea Undisclosed Beau‐Rivage Palace SA UBM Realitaetenentwicklung AG B&B Hotels Istrabenz Undisclosed Cadena Monte SL UBM Realitaetenentwickl tional Grid UK Pension & Resorts AS oup riental International & the Olayan Group rty Fund oup onium stads AB nstruction Co. els ed vestor (existing Accor Franchisee) bal Investors k els els g Gao ng Sp. z.o.o stigheter AB losed Choice Hotels AKA Home Capital AB stitutional ERE tin Shaw is O'Brien tree Group 0 Hotels 10 Hotels uro Hotel andoz Family Foundation Buyer ) € ed Union Investment ( 000 Fastighets AB Balder osed Royal Gulf 10,000 Schroders ImmoPlus 101,000 Midstar AB Price per Room sed Undisclosed Tatika Investments ,000 78,000 Undisclosed Qatari company 0,000 111,000 Hispania closed Undisclosed Hotusa Price (€) disclosed Undisclosed UniImmo: Deutschland Undisclosed Undisclosed Ilunion Hotels 81 10,700,000 132,000 CBRE Glo 40 8,656,000 216,000 Red Hotels Limited 63 Undisclosed Undisclosed Trygghem Bo 47 15,760,000 335,000 Seiler Hot 22 8,667,000 394,000 Paddy Kearney 42 12,600,000 300,000 Mar 75 Undisclosed Undisclosed H1 32 42,000,00085 1,313,000 Talus Real Estate 28,000,000 329,000 Aquila Capital 70 17,500,000 250,000 Hispania 70 Undisclosed Undisclosed PortoBay Hotels 546 117,000,000 214,000 Halk Ban 203 49,660,000 245,000 Kungsleden AB 138 18,435,000 134,000 Kursunlar Co 219 Undisclosed Undisclosed S 131 Undisclosed Undisclosed Undisclos 340 32,140,000 95,000 KAB Fa 145 26,700,000 184,000 DTZ I&AM on behalf of Na 120 11,679,000 97,000 Whitbread 168 25,320,000 151,000 AXA Real Estate 146 8,831,000234 38,300,000 60,000 CBRE Global Investors 164,000 Charities Prope 146 Undisclosed Undisclosed H10 Hot 140 Undisclosed Undisclosed H10 Hot 149 27,600,000 185,000 Undisclosed 272399 71,670,000 108,600,000 263, 272,000 Nordic 130 24,100,000 1 85,000 Huus Gstaad AG 136 46,000,000 338,000 Yunfen 138 55,000,000 399,000 Private in 170 25,600,000 151,000 Dalata Hotel Gr 150 36,800,000 245,000 Z Capital 130 23,100,000 178,000 Michael Holland 244 Undisclosed Undiscl 140 Undisclosed Undisclosed mLeasi 167 130,000,000 778,000 JV: Mandarin O 212 Undisclosed Undisclosed H 263 46,000,000 175,000 Oak 337 70,770,000 2 172 20,068,816 117,000 Ragde Eiendom 147 42,000,000 286,000 AXA Real Estate 105 10,400,000 99,000 Hispania 331 36,80 162 Undisclosed Undisclosed UniIn 183 25,000,000 137,000 MK 254 Un 875 23,600,000 27,000 Undisc 282 22,056 279 38,500,000 138,000 Minor Hotel Gr 236116 Undisclosed Undisclosed Undisclosed CHT & Partrim Undisclosed E 313 50,600,000 162,000 Hispania 182 Undis 179 285 Undisclo 135 10,500,000149 78,000 Undisclosed Axiare Undisclosed Den 278 45,000,000 162,000 mBank 162 Undisclosed Undisclos 106 10,700,000 Rooms Number of Oslo Lodz Bath Bath Flims Sitges Seville Bristol Bristol Lisbon Lisbon Zürich Girona Belfast Belfast Belfast Belfast Gstaad Madrid Madrid Madrid Madrid Madrid Madrid Madrid Madrid Madrid Malaga Malaga Antalya Sakarya Lucerne Zermatt Warsaw Tenerife Balikesir Banbury Vasteras Brighton Location Portoroz Mallorca Mallorca Wroclaw Wroclaw Wroclaw Lausanne Lausanne Barcelona Barcelona Barcelona Bucharest Stockholm Stockholm Stockholm Trondheim Alcobendas Basingstoke Gothenburg Birmingham Bournemouth UK UK UK UK UK UK UK UK UK UK UK UK UK Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Turkey Turkey Turkey Poland Poland Poland Poland Poland Norway Norway Sweden Sweden Sweden Sweden Sweden Country Slovenia Portugal Portugal Romania Switzerland Switzerland Switzerland Switzerland Switzerland Switzerland Switzerland nn) Courtyard by Marriott Stockholm Quality Hotel Friends Hotel Attache Lorens 14 Hotel Waldhaus Steigenberger Alpenhotel and Spa Hotel Mövenpick Lausanne‐Ouchy Beau‐Rivage Palace Zürich MGallery Rafaelhoteles Orense Hotel Ritz Madrid Tryp Atocha Hotel Monte Malaga (now the Ilunion Monte Malaga) Sandos San Blas Nature Resort & Golf Hotel Quality Hotel Panorama Hotel Palace Luzern Mardan Palace Antalya Grand Asya Hotel Elmas Garden Inn Holiday Inn Express Banbury M40 (to be rebranded as a Premier I Holiday Inn Belfast Premier Inn Bristol Suncliff & Cumberland & Cliffeside Hotels Jurys Inn Brighton H10 Puerta de Alcalá Hotel Vincci Malaga Hotel Playas de Mallorca Calas de Mallorca Complex Hotel Corregidor (3‐star) Dolce Sitges Hotel and Resort Hotel Monte Rosa Premier Inn Basingstoke Z Hotel Bath Combe Grove Manor Fitzwilliam Hotel Ten Square Tracy Park Golf & Country Hotel Etap Belfast Radisson Blu Hotel, Birmingham Sheraton Hotel Madrid Mirasierra Hotel & Spa future Madrid Hotel Source: HVS London Tivoli Oriente Radisson Blu Wroclaw Meliá Golf Vichy Catalan Holiday Inn Bernabéu Hostal Pereda Hotel Rex Hotel Aviz Hotel Solvasa Barcelona Hotel Hesperia Ramblas Hotel Andels Lodz B&B Wroclaw Centrum Holiday Inn Warsaw – City Centre (Development) Comfort Hotel Xpress Clarion Collection Hotel Grand Olav Howard Johnson Grand Plaza Bucharest Kempinski Palace Portoroz Rafael Madrid Norte El Montanya Radisson Blu Hotel, Wroclaw Property CHART 14: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2015 – CONTINUED – 2015 TRANSACTIONS HOTEL ASSET SINGLE EUROPEAN 14: CHART

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 14

ises & Gracemark e p Euro y n Hotels er Hotel Company ord Ltd d Capital Group an Porth Holiday Park Ltd italit o Hotels p : DevSecs & Cathedral Group plc ndisclosed anmoor Asset Management U Aviva Investors Chesterf Standard Life Investment Mawg Mansford Holdings Note: JV = Joint Venture Arora Holdings Von Esse Conegate Administrators McAleer & Rushe Kevin and Nigel Downs Downing Developments Undisclosed JV: between Sankaty Advisors & Canyon Partners Arora Holdings Clouston Group Shropshire Leisure Group Pati Investec Bank McAleer & Rushe JV Starwoo Patrizia Immobilien Alliance Group Alix Partners for Prima Hotels Concord Estates Investra Development McAleer & Rushe Undisclosed Murailles Properties Ltd Undisclosed C Angelo Gordon & Co, Amerimar Enterpr Administrators JV: Helica l Bar plc & Crosstree Bouygues JV: Benson Elliot & Algonquin Quintai n Quintain KSL Capital Partners Apollo Global Management Corncrest JV: Moorfield Group Ltd & Baupost Capital Administrators Berkeley Group Tritax Assets Chichest McAleer & Rushe Administrators (Deloitte) Seller London & Regional The Hotel Collection Sanguine Hospitality and funds managed by Downing Capital Valor Hos Lazarus Properties Ltd Avni Hotels Ltd Mayfair Capital eng ents ement d p Management estment Management l Ltd AKA Oxfordshire Inn Ltd en (Sunrider International) es ners e ity Trusts & Copthorne al ichels d d estor al Investors bal Investors A rn Group ead losed closed closed p isclosed ering Properties Ltd a Immobilien al & General Property Grou JV: KSH Holdings, Heeton Holdings, Ryobi Kiso Holdings & Lian B US investment group headed by Vine Avenue Advisors & True Hotels Buyer ) 0 Queensgate Investment € 00 CBRE Global Investors ( 000 Aprirose Investment ,000 AXA Real Estate 128,000 Undisclosed Price per Room Undisclosed MCAP Global Finance d Undisclosed Undisclosed 00 106,000 CBRE Global Investors Price (€) 42 20,477,000 488,000 80 21,703,000 271,000 TH Real Estat 90 8,500,000 94,000 Undisclosed 58 9,652,000 166,000 Undisclosed 96 10,700,000 111,000 Undisc 36 7,601,000 211,000 Highwater Estat 82 14,208,000 173,000 Ashok Bans 40 13,800,000 345,000 Bird Group 89 7,987,000 90,000 Hellaby Hall Hote 87 7,500,000 86,000 Mayfair Capital Inv 56 16,755,000 299,000 Knowledge School Trust 90 7,799,000 87,000 Undisclose 37 8,525,000 230,000 Harbour Hotels 300 27,900,000 93,000 MHA Associates 116 18,460,000 159,000 Undisclose 251 26,600,0 400 113,552,000 284,000 Leg 208 42,431,000 204,000 Pick 264 28,127,000 107,000 Private Inv 109 15,900,000 146,000 Undis 132 99,456,000 753,000 KSL Capital Part 110 19,620,000 178,000 Millennium 258 206,103,000 799,000 Limulus LTD 230 36,400,000 158, 350 61,602,000 176,000 M&L Hospitality 151141 16,755,000 18,000,000 111,000 Marathon Asset Manag 134 15,800,000 118,000 Standard Life 170 23,204,000 136,000 LaSalle Investment 310 41,135,000 133,000 Sladen Capita l Partners 103 9,700,000 94,000 Whitbread 108 Undisclosed Undisclosed The Cai 331 231,451,000 699,000 Tei Fu & Oi lin Ch 312 Undisclosed Undisclosed Whitbr 110 28,748,000 261,000 Henley Property Investm 120 14,063,000 117,000 111 29,000,000 261,000 Standard Life 204 9,600,000 47,000 Und 213 20,884,000 98,000 Charities Property Fun 100 Undisclose 170 Undisclosed Undisclosed Undis 140 17,333,000 124,0 128 16,387,000 128,000 CBRE Glob 152 10,900,000 72,000 Sir David M 196 Undisclosed Undisclosed Accor S 120 23,200,000 193 198 84,411,000 426,000 CDL Hospital 107 21,083,000 197,000 Azure Property Grou 113 18,622,000 165,000 CBRE Glo 103 135,091,000 1,312,000 Crimson Hotels 140 Undisclosed 120 37,700,000 314,000 Leena Gro up 361 55,204,000 153,000 Oaktree 238 59,000,000 248,000 Dek 190 126,200,000 664,000 JV: AXA IM – Real Assets & NH Hotel Group 906 472,819,000 522,00 Rooms Number of Derby Exeter London London London London London London Ipswich London London London London London London London London London London London London London London London Chester Reading Torquay Glasgow Glasgow Swansea Location Chatham Liverpool Liverpool Liverpool Liverpool Oswestry Newquay Sketchley Inverness Doncaster Edinburgh Edinburgh Edinburgh Edinburgh Edinburgh Newcastle Northwich Chichester Enniskillen Cambridge Rotherham Nottingham Manchester Cheltenham Loch Lomond Sunbury‐on‐Thames Uk UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK Country ) Bermondsey Square Hotel Premier West Hotel 2‐6 Inverness Terrace Travelodge Torquay Source: HVS London Premier Inn Swansea City Leonardo Hotel London Heathrow Airport Premier Inn Sunbury Premier Inn Heathrow Terminal 5 Jurys Inn Nottingham Sketchley Grange Hote & Spa Cameron House Ace Hotel London The Park Mawgan Porth Nunsmere Hall Hotel Lions Quays Hotel & Spa The Forbury Hotel Hellaby Hall Hotel Travelodge Liverpool Central The Strand INNSIDE by Meliá Manchester Crowne Plaza Newcastle Stephenson Quarter Jurys Inn Liverpool Hard Days Night Hotel Hotel Indigo Arora Hotel Heathrow (now the Heathrow Hotel Bath Road) Holiday Inn Express – London ExCeL Travelodge Ipswich Kingsmill Hotel St Ermin's Hotel Campanile Glasgow Airport Travelodge London Hounslow ibis Styles Ealing London (Development) Boltons Hotel Lough Erne Resort Jurys Inn Exeter Ramada Glasgow Airport Regina House Crowne Plaza Edinburgh – Royal Terrace Empire House Novotel Edinburgh Park ibis Hallsville Quarter Village Hotel Edinburgh Premier Inn Wembley Park Radisson Blu Hotel, Edinburgh Hilton London Wembley Travelodge Chatham Maritime Cheltenham Park Hotel DoubleTree by Hilton Hotel & Spa Chester Premier Inn Doncaster Central High Residence Inn Holiday Inn London Kensington Forum Regency Hotel (now the DoubleTree by Hilton London – Kensington nhow Hotel London Cambridge City Hotel Property Ship Hotel Jurys Inn Derby Park House Travelodge Hotel CHART 15: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2015 – CONTINUED – 2015 TRANSACTIONS HOTEL ASSET SINGLE EUROPEAN 15: CHART

EUROPEAN HOTEL TRANSACTIONS 2015 | PAGE 15 About HVS HVS, the world’s leading consulting and services organization focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries, celebrated its 35th anniversary last year. Established in 1980, the company performs 4,500+ assignments each year for hotel and real estate owners, operators, and developers worldwide. HVS principals are regarded as the leading experts in their respective About the Authors regions of the globe. Through a network of more than 35 offices and Dayk Balyozyan is an more than 500 professionals, HVS provides an unparalleled range of Associate with HVS’s London complementary services for the hospitality industry. www.HVS.com office. Dayk holds a Master’s in Management degree from Toulouse Business School, with Superior results through unrivalled hospitality intelligence. a specialisation in Corporate Everywhere. Finance. Prior to HVS, Dayk worked in management With offices in London since 1990, HVS London serves clients with consulting, investment banking and hospitality interests in the UK, Europe, the Middle East and Africa (EMEA). in Paris, New York and Dubai. Since joining the London office in 2015, he has worked on We have appraised some 4,000 hotels or projects in more than 50 valuations, feasibility studies and consulting countries in all major markets within the EMEA region for leading mandates throughout Europe and Africa. hotel companies, hotel owners and developers, investment groups Tel: +44 (0) 20 7878 7724 and banks. Known as one of the foremost providers of hotel [email protected] valuations and feasibility studies, and for our ability, experience and Adrian Ruch is a Senior relationships throughout Europe, HVS London is on the valuation Associate with HVS Hodges panels of numerous top international banks which finance hotels and Ward Elliott, where he focuses portfolios. on the sale of European single and portfolio assets. He joined the company in 2014, having previously worked at UBS and About HVS Hodges Ward Elliott PwC’s lodging and tourism consulting practice, as well as at independent Swiss HVS Hodges Ward Elliott is the hotel brokerage and investment hotels. He speaks English, German and French and holds a BSc (Hons) in International Hospitality banking division of HVS. Operating within the European marketplace, Management from Ecole hôtelière de Lausanne HVS Hodges Ward Elliott acts on behalf of its clients in the sale with a specialisation in real estate, market and and financing of hotels. Assignments include individual assets and

portfolios, with transactions having been successfully concluded in Tel:corporate +44 finance.(0) 20 7878 7778 most major European markets. [email protected] For further information about the services of the London office, please contact Charles Human on +44 20 7878 7771 or [email protected].

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