MARCH 2014 | PRICE £500

2013 EUROPEAN TRANSACTIONS

Veronica Waldthausen Associate Louise Fury Senior Editor

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

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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 NH GRAND HOTEL KRASNAPOLSKY AMSTERDAM  Total European hotel transaction volume has reached a new peak since the onset of the global inancial crisis, with a volume of €7.7 billion in 2013, a 39% increase on the €5.6 billion recorded in 2012 (although still well below the €15.9 billion, €20.3 billion and €18.8 billion recorded in each of the boom years of 2005, 2006 and 2007, respectively);¹  In 2013, the irst quarter alone accounted for more than half of the year’s total transaction volume, totalling €4.2 billion over just three months;  Transaction activity was driven by portfolio deals, which more than doubled in the irst quarter of 2013 compared to the same period in 2012;  The UK remained the most liquid hotel  In terms of number of deals, activity investment market, with transaction increased in 2013 with a total of 121 volume totalling €3 billion, accounting for transactions taking place compared to 99 39% of total sales; in 2012;  The Netherlands showed the greatest  2013 was marked by the sale of several increase in activity in Europe in 2013 prestigious assets, including the 447- when compared to 2012. Transaction room InterContinental Park Lane for volume totalled almost €500 million €463 million (€1 million per room) and compared to €118 million in 2012; the 138-room Mandarin Oriental in Paris for €290 million (€2.1 million per room,  Middle Eastern buyers played a but this also included two street-front signiicantly larger role in the 2013 retail units). hotel transactions market. Just one year ago, capital from the region averaged approximately 12% of total volume and in Setting the Scene 2013 it reached 30%, growing in absolute terms from €646 million to €2.3 billion; After a drop in European hotel investment volume in 2012, 2013 proved to be a strong  Distressed sales only made up 10% of the year, with total transaction volume reaching total volume, lower than in previous years; €7.7 billion, equating to 39% growth on 2012. Europe is slowly emerging from the

CHART 1: TOTAL HOTEL INVESTMENT VOLUME 2004-13 Eurozone Crisis and investor sentiment 25 has improved. Debt Portfolio Transactions inancing has become 20 Single Asset Transactions Ten-Year Average more readily available as in addition to 15 established European hotel lenders, such € Billions 10 as Aareal Bank, a growing number 5 of domestic and overseas banks 0 have begun showing 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 interest in the hotel Source: HVS – London Office

¹Only transactions that sold for over €7.5 million are considered in this analysis. EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 2 sector again, facilitating CHART 2: INVESTMENT VOLUME BY QUARTER funding and cross-border 7 Cumulative investment. Signiicant growth 6 Single Asset 13% of Total in activity was recorded from 5 Portfolio Middle Eastern investors, and 20% of Total 4 13% of Total Asian investors also seem 55% of Total keener to tap into Europe than 3 in previous years. Although € Billions 2

transaction volume has yet 1 to reach the ten-year average 0 of €10 billion, 2013 recorded Q1 Q2 Q3 Q4 the highest activity since the 2013 2013 2013 2013

onset of the global inancial Source: HVS – London Office crisis. The many portfolio deals that were closed in the Hayley in the UK and the 42-asset irst quarter of 2013 marked a strong start Marriott portfolio in the UK. After slower to the year, while the Hilton IPO in the latter growth in the second quarter, the summer half continued to demonstrate robust demand months showed an uptick in activity, driven for hotel investment and a strong recovery of almost equally by single asset and portfolio hotel real estate markets. transactions. Owing to a shortage of hotels available for acquisition on the market, sales slowed in the last quarter of 2013 and Quarterly accounted for only 13% of the year’s total Investment Activity transaction volume. Unlike over the previous few years when hotel investment volume was spread Single Assets relatively evenly between the four quarters, Single asset sales accounted for 57% of total the irst quarter of 2013 accounted for 55% transaction volume in 2013, amounting to of the total transaction volume. This growth €4.4 billion, an increase of 32% on 2012. was primarily driven by portfolio sales. The sales price per room also grew, by 13%, February alone accounted for almost 40% relecting the improvement in investor of the year’s activity and saw the closing of, sentiment and also the quality of assets among others, the sale of four Groupe du coming onto the market, averaging €208,000 Louvre hotels in France, the Queens Moat per room. It is interesting to note that three House portfolio in Germany, 22 Principal single assets sold for more than €1 million per key in 2013 compared to only one asset in 2012. CHART 3: SINGLE ASSET TRANSACTION VOLUME 2004-13 Spotlight on the UK: 8 160

Single Asset Transaction Volume The UK was once again the 7 140 Number of Transactions most liquid market in Europe, 6 120 with single asset sales totalling Number of Transactions of Number €1.4 billion, far above any 5 100 other European market, yet 4 80 relatively unchanged from

€ Billions the 2012 performance. 3 60 Approximately 60% of these 2 40 hotels transacted in London. One of the most distinct 1 20 transactions of the year was — 0 the sale of the InterContinental 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Park Lane in London to Qatari group, Constellation Hotels for Source:S HVS – London L d O Offiffice

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 3 €463 million (£400 million). CHART 4: SINGLE ASSET PRICE PER ROOM 2004-13 Both the freehold and 300,000 60% leasehold interests were sold Average Sales Price per Room % Change in two separate but virtually 250,000 45% simultaneous transactions. 200,000 30% Spotlight on Germany: % Change The robust economy in Germany 150,000 15% has made the country a shining 100,000 0% star in terms of both hotel

performance and investment (€) Per Room Price Sales Average 50,000 -15% and it continues to maintain its spot on the podium, accounting — -30% for just under 20% of total 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

European single asset sales. In Source: HVS – London Office 2013, 18 sales were reported, with the capital, Berlin, leading hotel transactions (compared to six in France), the way with six transactions, followed by including assets such as the NH Grand Hotel Munich and Hamburg. The sale of the 342-room Krasnapolsky Amsterdam, acquired by AXA Real Grand Berlin achieved the highest price Estate Investment Managers for €157 million of €100 million (around €292,000 per room). (€335,000 per room), and the Hotel Pulitzer in It was sold by SEB Management (from SEB Amsterdam, which was sold to an undisclosed ImmoInvest Fund) to Qatari group, Al Rayyan buyer. Tourism and Investment Company (ARTIC). Other notable transactions included Fairmont Portfolio and Rafles Hotels International’s sale of the Vier Corporate Activity Jahreszeiten in Hamburg to the Dohle family for €40 million (€256,000 per room) and Le Royal Portfolio and corporate sales volume recorded Méridien Hamburg for €64 million (€225,000 48% growth on 2012 levels, totalling per room) to an undisclosed buyer. We also €3.3 billion, a record since the onset of the note that a number of sales were developments, global inancial crisis but still far below the which illustrates that investors are increasingly 2006 peak. Remarkably, the irst quarter of willing to take on higher risk in the expectation 2013 drove portfolio deals to these heights as of achieving higher yields. just under 80% of all portfolio transactions occurred within the irst three months of the Spotlight on the Netherlands: year. Some of the most notable transactions The Netherlands ousted France for third included Constellation Hotels’ acquisition of the place in terms of total number of assets sold, Portfolio (four hotels) from thereby shaking up the scene in 2013. Even Capital for €700 million, ADIA’s (Abu though transaction volume in the Netherlands Dhabi Investment Authority’s) purchase of 42 (€467 million) did not overtake that of France Marriott hotels in the UK for €640 million and (€593 million), it has pushed its way up the KSL, a private equity irm based in Colorado, ladder. This small country recorded eight purchased the and portfolio for €234 million.

CHART 5: TRANSACTIONS IN THE NETHERLANDS 2013

Number Price per Room Property Location Price (€) Buyer Seller of Rooms (€) NH Grand Hotel Krasnapolsky Amsterdam Amsterdam 468 157,000,000 335,000 AXA Real Estate Investment Managers NH Hoteles Rembrant Classic Hotel Amsterdam 111 25,000,000 225,000 Ennismore Capital Hotusa Hotels Park Hotel Amsterdam 189 Undisclosed Undisclosed Invesco Real Estate Grand City Hotels & Hotel Pulitzer, Amsterdam Amsterdam 230 Undisclosed Undisclosed Undisclosed Undisclosed Schiphol (Development) Amsterdam 314 Undisclosed Undisclosed The Vincent Hotel Group Municipality of Haarlemmermeer (Schiphol) Maastricht Maastricht 150 30,000,000 200,000 Private Russian Investors De Ruiterij BV Novotel Development at the Forum Rotterdam Rotterdam 150 Undisclosed Undisclosed Bouwinvest Multi Corporation City Centre The Hague The Hague 197 15,500,000 79,000 INTERNOS Global Investors Aprirose Real Estate Investment

Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 4 Portfolio Transactions by CHART 6: PORTFOLIO TRANSACTION VOLUME 2004-13 Region: 16 80

Portfolio Transaction Volume Portfolio transactions in the 14 70 Number of Transactions

UK again dominated the scene Transactions of Number on all fronts and accounted 12 60 for just under 60% of the total 10 50

rooms sold in portfolio deals. € Billions However, this translated into 8 40 only 48% of the total volume, 6 30 illustrating that the average price per room was relatively 4 20

low, at just over €122,000. 2 10 France ranked second in terms — 0 of total portfolio transactions 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 volume at €1 billion and Source: HVS – London Office was able to realise a higher average price per room of as December saw Berlin-based HR Group approximately €292,000, primarily driven purchase a portfolio of three hotels by the sale of the Group du Louvre portfolio, for €40 million. which included luxury assets. Interestingly, portfolio transactions in Russia slowed Buyers in 2013 and only one portfolio deal was recorded: the Alrosa Russian Hotel Portfolio, Institutional investors, including sovereign which included six hotels, two of which were wealth funds, represented a large chunk of the located in Moscow and St Petersburg. market, accounting for approximately 42% of portfolio buyers and 19% of single asset Germany’s hotel investment market realised purchasers. This was in part due to ADIA’s an increase in portfolio activity of almost acquisition of 42 Marriot hotels in the UK. 400% on 2012, relecting the demand to Real estate investors, who in general have invest in a stable and growing economy a lower risk proile than the average, have as well as in a market where average daily continued to make the headlines, as they seek rates still have large growth potential (albeit to diversify their portfolios and invest in assets from a low base compared to the rest of in key European cities, including London, Europe). The Queens Moat House portfolio Paris, Berlin and Amsterdam. of 20 hotels located in primary, secondary and even tertiary cities throughout Germany Investment in single assets from high-net- was sold by Goldman Sachs to Israeli Fattal worth individuals (HNWI) showed enormous Hotel Management for €332 million in growth in 2013 of just under 70% on the irst quarter, and activity continued 2012 levels (from €586 million in 2012 to €982 million in CHART 7: HOTEL TRANSACTIONS BY REGION – 2013 VS 2012 2013), as investors from the Middle Portfolios – 2013 Portfolios – 2012 East in particular, displayed a

Other UK continued and 23% UK Other 26% growing interest 36% 32% in investing in key assets throughout Europe. Germany 18% Hotel operators

France have continued to France Germany Russia 5% 28% purchase strategic 23% 9% assets as part of

Source: HVS – London Office their expansion

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 5 strategies. Most CHART 8: HOTEL INVESTMENT BY BUYER CATEGORY 2013 notably, Mandarin Single Assets Portfolios Oriental acquired the Mandarin Oriental in Paris from their Hotel Operator Real Estate Hotel Operator joint venture High-Net-Worth 18% Investor 18% partner Société Individual 24% 27% Fonciére Lyonnaise Institutional Investor 19% for €290 million Real Estate Private Equity 10% (€2.1 million per Investor 24% Institutional room, although this Investor Private 42% deal included two Equity 11% Hotel Hotel prime retail units) Investment Investment Company and The Dorchester Company 4% 3% Collection purchased Source: HVS – London Office the Eden Hotel in the scene. Asian investors are also trying to Rome for €105 million (€868,000 per room) get their foot in the door and have shown a from Starman, increasing its portfolio to ten slight increase in volume over the past twelve hotels. months. In 2013, North American investors Private equity companies are also showing were focused on investing in their own region sustained interest in hotels, with some of rather than in Europe, as their domestic the larger and more active players in Europe market showed strong growth and a good including Starwood Capital, Blackstone and recovery. AXA Real Estate Investment Managers. In terms of investment by region, 2013 Sellers marked a change: European investors no Similar to the main buyers, the most active longer accounted for more than 50% of sellers included hotel operators, real total hotel investment in the region as they estate investors and institutional investors. had over the previous ive years. Middle Continuing the asset-light strategies being Eastern capital in 2013 played an ever more followed by most major global hotel brands, important role in Europe and almost tripled operators still accounted for approximately on 2012 volumes, now making up 30% of one-third of single asset sales and almost total transaction volume, compared to only 10% of portfolio transactions. However, this 12% one year ago. Investors from the Middle is a slowdown on 2012, perhaps indicating East are looking to diversify their holdings that many asset-light strategies have been and to invest in more stable markets than successfully implemented or changed some of those closer to home, which should altogether. For example, has announced continue to drive interest in key European it is prepared to use its balance sheet again to acquire assets. Some of the most notable markets going forward. Wealth funds from sales by operators in 2013 included the Abu Dhabi and Qatar continue to dominate InterContinental CHART 9: BUYER ANALYSIS BY REGION 2010-13 London Park Lane, which sold 100% Undisclosed for €463 million Africa (£400 million). 80% Asia Middle East Additionally, the North America 60% Europe NH Grand Hotel Krasnapolsky 40% in Amsterdam was sold by 20% NH Hoteles for €157 million 0% 2010 2011 2012 2013 (€335,000 per room) and the Source: HVS – London Office

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 6 CHART 10: HOTEL INVESTMENT BY SELLER CATEGORY 2013

Single Assets Portfolios Undisclosed 1% Bank/Receiver Hotel Government 1% Bank/Receiver 6% 10% Operator 9% Undisclosed 3% Private Equity 1% Hotel Investment High-Net-Worth Company 1% Individual 7%

Hotel Operator 29% Hotel Investment Real Estate Company 14% Investor 31% Institutional Investor 47%

Real Estate Institutional Investor 33% Investor 7%

Source: HVS – London Office

Fairmont Vier Jahreszeiten in Hamburg was they continue to look at investing primarily sold by Fairmont Rafles Hotels International in prime assets. This has already been for €40 million (€256,000). relected in the sale of the London Edition to ADIA in January 2014 for an undisclosed Not surprisingly, given the improvement sum, through HVS Hodges Ward Elliott. in the overall market, the percentage of Additionally, North American investors, distressed sales decreased from 12% in 2012 primarily private equity companies, real to approximately 10% of total transaction estate investors and institutional investors, volume in 2013. The majority of single assets will eye Europe as an attractive region that were sold from receivership transacted with continuous growth potential and in secondary and tertiary markets, with the comparatively better value for money. The exception of the London King’s question now is: will there be enough assets Cross Royal Scot. available for sale to meet investor demand? Conclusion – HVS – After a lengthy double-dip recession, the European hotel industry has signalled positive trends throughout 2013, as most markets have seen occupancy and/or average MANDARIN ORIENTAL PARIS rate grow and hotel transaction volume reached new heights since 2007. The hotel real estate market has made a comeback. Unlike just two years ago, when bank debt was scarce, inancing has become much more readily available, both from domestic as well as overseas banks (for prime assets), changing the hotel investment landscape. The many portfolio deals that were closed in the irst quarter of 2013 marked a very strong start to the year, while the Hilton IPO in the latter half continued to show the high demand for hotel assets and strong recovery of hotel real estate markets. As investor appetite has remained strong in the irst few weeks of this year, 2014 is expected to be another promising year. We expect that HNWIs and sovereign wealth funds from both Asia and the Middle East will continue to play an ever more important role in the European real estate market as

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 7 ing Group A Funds managed by Goldman Sachs’ Whitehall Street Real Estate division ality Group Hotel Partners & Patron Capital Cycas Immobilier Bouygues Immobilier Buyer Seller 406,000 Constellation Hotels Holding Capital Group Starwood Price per Room (€) Price (€) Rooms Number of 3 1,128 114,700,000 102,000 Choice Hotels First Hotel Group Hotels Number of BelgiumDenmark and Sweden 5 573 Undisclosed Undisclosed Development CTF BRE Europe Hotel Holding and Alliance Hôtellerie France 4GermanyGermany 1,315Russia 3 280,000,000 213,000 3 Assur du Crédit Mutuel 619 6 603 Undisclosed Undisclosed Gecina HR Group Undisclosed 563 Undisclosed Union Investment 52,800,000 94,000 OOO Nord Group of Private Investors Alrosa UKUK 5 220 3 30,300,000 138,000 Pramerica 229 Undisclosed Undisclosed Investments Dominvs Nicolas James Hotels Ltd Undisclosed Mercure Brussels Center Louise, Liège Centre, Leuven Center, Alliance Hotel Brussels Airport, Expo Club Med Val d'Isére, La Plagne 2100, Peisey-Villandry, Club Med Opio en Provence Mercure Munchen Neuerlach, Frankfurt Eschborn Ost, Frankfurt Airport Motel One Düsseldorf Hauptbahnhof, Frankfurt-East Side, One Stuttgart ALROSA na Kazachyem, Vedensky Hotel, Zarnitsa AK ALROSA, Pur- Navolok Hotel, Polyarnaya Zvezda Christchurch Harbour Hotel and Spa, Salcombe Sidmouth Harbour Hotel, St. Ives Hotel and Spa, The Kings Arms Aston Hotel Dumfries, Sheffield/Rotherham, Darlington Three First Hotels First Hotel Skt. Petri, Vesterbro, Amaranten CTF Portfolio Four Groupe Du Louvre HotelsTwo Four-Star Paris HotelsClub Med Portfolio Hotel Du Louvre, La Fayette, Martinez, Palais de la Méditerranée FranceQueens Moat House Portfolio (20 Hotels)Two art'otels Various Amarante Arc de Triomphe, Hotel ChamplainMercure Portfolio 4Motel One Portfolio 1,724Alrosa Russian Hotel Portfolio 700,000,000 Two Hotels In TurkeyTwo InterContinental Hotels art'otel Berlin Mitte, Kudamm France London Stratford City, City Seven Seas, Kemer Imperial 2 UK 100 Germany Germany 25,000,000 250,000 La Financiere EOS 2 20 2 3,600 242 350 332,300,000 Turkey Finance S Demous 17,500,000 70,200,000 92,000 72,314 200,000 Fattal Hotel Management A subsidiary of PPHE Group M&L Hospit 2 Undisclosed 612 53,600,000 88,000 Holding OTI Is Gayrimenkul Yatirim Ortakligi AS Property Hotels Location Hotels Arema Velodrome (Development) Complex of Three- and Four-Star Hotels at the Arema Velodrome France 2 288 24,000,00042 Marriott Hotels 83,000Malmaison and Hotel du Vin Portfolio (26 Hotels) Various ANF Harbour Hotels Portfolio 2013 PortfolioMenzies Hotels Portfolio (12 Hotels) VariousHotelier Group's Portfolio of Aston Hotels Principal Hayley (22 Hotels) Various Various Various UK 26 UK 1,903 UK 234,300,000 UK 123,000 42 KSL UK and France 12 7,737 640,000,000 22 1,207 5 83,000 102,100,000 Abu Dhabi Investment Authority 3,858 85,000 562 Royal Bank of 414,800,000 Topland Group Deloitte 29,300,000 108,000 Starwood Capital Group 52,000 Penta Hotels Principal Hayley and Lloyds Bank Administrators BDL Source: HVS London CHART 11: EUROPEAN PORTFOLIO TRANSACTIONS 2013

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 8 arl fund) ¹ Transaction included two street-front retail units. gement GmbH/A+S Rückversicherung ² Transaction comprised a complex containing the hotel, residential space and retail properties. Buyer Seller (€) Price per Room Price (€) Rooms Number of Motel One Berlin-BellevueHotel AurumAdrema Hotel²Holiday Inn Friedrichshain (Development)O2 World Hotel (Development)NH Düsseldorf City NordMeliá DüsseldorfHoliday Inn Frankfurt Hauptbahnhof (Development)Le Royal Méridien HamburgFormer InterContinental HamburgFairmont Vier JahreszeitenGrand Hotel Heligendammibis Munich City West Germanyrelaxa Hotel Munich (Development) Germanyangelo Hotel Munich Westpark Germany Berlin Frankfurt Germany Berlin Germany Berlin Germany Germany Germany Germany 249 Berlin 217 Berlin Düsseldorf Germany Hamburg 248 Germany Germany Hamburg Undisclosed Undisclosed Germany Düsseldorf 217 Undisclosed Undisclosed 15,500,000 Germany Hamburg Munich Union Investment VLAEKH Pension Fund Germany Heiligendamm 330 Undisclosed 41 63,000 286 Munich 130 Munich 284 37,500,000 Undisclosed FLE SICAV FIS 201 Landesarztekammer Hessen VW 181 25,000,000 20,000,000 9,500,000 156 64,000,000 114,000 121 35,000,000 154,000 INTERNOS Global Investors 26,000,000 87,000 232,000 40,000,000 225,000 207 22,000,000 EB Group 174,000 Klaus-Michael Kühne Adler Real Estate AG 208 Undisclosed 144,000 Strauss & Partner 256,000 Undisclosed 50,000,000 182,000 Paul Morzynski & Partner Strauss Talanx Immobilien Mana Dohle family 21,500,000 relaxa hotel GmbH 200,000 103,000 Union Investment INTERNOS Global Investors Matrix German Portfolio No. 1 Düsseldorf S AXA Investment Managers Deutschland Investate A/S Undisclosed Undisclosed Undisclosed Insolvency Administrators Pramerica TMW Imco GmbH Undisclosed Fairmont Raffles Hotels International UBM Realitätenentwicklung (Austria) Austria Trend Hotel Beim TheresianumHotel Am Kozerthaus ViennaHilton Vienna Danube Motel One at Vienna Central Station (Development) Le LouiseHotel ZografskiHilton SofiaSt Pierre Park Hotel & Golf ResortVilla MagnoliaLe Palais Prague AustriaInterContinental Prague (90% stake) AustriaScandic OlypmicSofitel Paris Le Faubourg ViennaMandarin Oriental Paris¹ ViennaBest Western Mercedes AustriaSeven HotelConcorde Opéra ParisMarriott Courtyard Paris La Defense West – Colombes Austria ViennaGrand Hyatt Berlin Channel Islands Bulgaria 533 Guernsey 116 Vienna Czech Republic Belgium Undisclosed Prague Sofia France 10,500,000 Undisclosed Brussels 211 Württemberg Property Bulgaria 131 90,000 Croatia Paris Republic Czech France Prague 23,000,000 367 MFG Beteiligungs AG France Sofia Undisclosed Denmark 372 France Lovran 421 109,000 Undisclosed 52,000,000 Paris 169 Hand Picked Hotels Esbjerg Paris 115,000,000 Immovate France Paris 45,000,000 142,000 16,500,000 150 France 309,000 72 INTERNOS Global Investors Germany ECE 107,000 245 Paris Best Hotel Properties Undisclosed 98,000 12 Chimimport Undisclosed Paris Berlin 147 147 24,000,000 Maranatha Group Undisclosed Conwert Immobilien Invest SE 138 Undisclosed Algonquin 4,000,000 Private Investor 37 113,000,000 13,400,000 98,000 290,000,000 332,000 SandpiperCI Global Properties Bulgaria 266 769,000 8,000,000 91,000 Immofinanz 2,100,000 Drazen Srdoc Mount Kellett Capital Management LP 342 Mandarin Oriental International 35 Familien Villemoes 150,000,000 Accor 216,000 Westmont Hospitality 100,000,000 Maranatha Group 564,000 12,800,000 Blackstone Group 292,000 Accor Accor Private Seller 366,000 Al Rayyan Tourism and Investment Company Qinn Group Maranatha Group Fonciére Lyonnaise Société Warimpex Finanz- Und Beteiligungs AG Host Management (from SEB Immolnvest SEB Undisclosed Liburnia Riviera Hotels Undisclosed Starwood Capital Group Undisclosed Property Country Location Source: HVS London CHART 12: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2013

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 9 r (Schiphol) ¹ As well as guest rooms, the also includes self-catering lodges. Buyer Seller (€) Price per Room Price (€) Rooms Number of Russia Moscow 486 Undisclosed Undisclosed Alexander Klyachin Undisclosed Crowne Plaza MaastrichtNovotel Development at the Forum Rotterdamibis City Centre The HagueSheraton KrakowHotel Bristol Mercure Zakopane KasprowyRenaissance Moscow Olympic Hotel (now the AZIMUT Hotel Barceló RavalHotel Arena NetherlandsRafaels Hoteles Diagonal PortLas Dunas Beach Hotel and Spa RotterdamHesperia Troya HotelRadisson Blu Riverside GothenburgSheraton StockholmScandic Hotel Infra City NetherlandsKempinski Grand Hotel des BainsTravelodge Bath Waterside 150 Netherlands MaastrichtPremier Inn Belfast City Cathedral Quarter The Hague Poland Undisclosed Poland Undisclosed Bouwinvest Zakopane 150 Spain Poland Spain Spain Cracow Sweden 197 30,000,000 Warsaw Barcelona UK 15,500,000 Marbella Spain Gothenburg Spain Switzerland Barcelona 200,000 288 Private Russian Investors Sweden 79,000 Sweden Moritz St. UK 232 56,400,000 Barcelona Tenerife INTERNOS Global Investors Belfast 265 115 206 Uppland Vasby Stockholm 38,000,000 88 196,000 186 Bachleda Grupa Inwestycjna Undisclosed 49,000,000 Bath 60,000,000 184 Multi Corporation 164,000 37,000,000 16,000,000 Undisclosed 320 84 Algonquin 318 185,000 Groupe Euro Hotel 291,000 Undisclosed 171 465 199,000 Ruiterij BV De 182,000 Fastighets AB Balder Group of Private Investors 19,900,000 Undisclosed 15,000,000 Undisclosed Aprirose Real Estate Investment Union Investment Private Buyer Private Russian Investor 102,000,000 10,900,000 Undisclosed 62,000 179,000 125 Alexandre Hotels 219,000 Orbis 64,000 Pestana Group Profi Fastigheter AB Host Hotels & Resorts 13,100,000 CBRE Global Investors 105,000 Hotels Starman Reyal Urbis LaSalle Investment Management Skanska Immofinanz Undisclosed Barceló Group Recievers Undisclosed Orion Capital Managers Blackstone Group Deloitte Menzies Hotels Plc Undisclosed Motel One Munich-Deutsches MuseumGolden Tulip, FrankfurtThe River Lee HotelAshford Castle ResortFota Island Resort¹ Hotel & Spa, CorkTrinity Capital HotelCitywest HotelHotel EdenSan Clemente Palace ResortZlatna Obala GermanyNH Grand Hotel Krasnapolsky AmsterdamRembrant Classic Hotel MunichPark HotelHotel Pulitzer, AmsterdamNovotel Schiphol (Development) Germany Ireland Ireland Ireland Am Main Offenbach 469 Netherlands Ireland Cork 251 Cork Undisclosed Cong Ireland Amsterdam Italy Undisclosed Cork 9,000,000 Union Investment Ireland Dublin Italy Venice Netherlands Netherlands 36,000 468 Netherlands Dublin Montenegro 126 Amsterdam Amsterdam 182 New Century Real Estate 83 Amsterdam 157,000,000 Sutomore Rome 131 8,000,000 24,800,000 Netherlands 335,000 195 22,800,000 205 Amsterdam AXA Real Estate Investment Managers 111 20,000,000 314 136,000 63,000 275,000 774 35,000,000 230 370 Undisclosed iNua Hospitality Undisclosed Undisclosed Red Carnation Hotels 153,000 25,000,000 Undisclosed 179,000 30,000,000 Undisclosed Undisclosed 121 The Kang Family 11,800,000 Undisclosed Undisclosed Permak Investments 189 John Malone 225,000 NH Hoteles Undisclosed Vincent Hotel Group The 39,000 Undisclosed 105,000,000 Ennismore Capital 32,000 Undisclosed BSQ Investments 868,000 Alexander Grigoriev Undisclosed Invesco Real Estate The Ernst & Young (Administrators) Undisclosed Municipality of Haarlemmermee O'Callaghan Owen Undisclosed NAMA Liam and Des O'Dwyaer Hotusa Hotels UK Services Co. Starman Undisclosed Montenegrin Agency for Privatization Associates (Administrators) Ferris Grand City Hotels & Resorts Property Country Location Source: HVS London CHART 13: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2013 – CONTINUED

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 10 tional) (subsidiary of the Olympian Group ¹ Transaction included 102 (out of 144) guest rooms and 9 19) apartments. Buyer Seller (€) Price per Room Price (€) Rooms Number of Property Country Location at Helmont HouseNovotel Cardiff CentreApex Waterloo Place Ground LeaseTravelodge West EndFawsley HallOlde Bellthe Hempel HotelVandon House HotelParkes HotelApex City of London Ground LeaseInterContinental London Park LaneHilton London Wembley Hotel (50% Interest)Travelodge London Farringdon UKPremier Inn hotel at Goodman's Fields Development UKPremier Inn Westmoreland Road (Development)Travelodge London Woolwich Hotel UKHilton Garden Inn Luton North UKTravelodge London King's Cross Royal Scot CardiffMetropolitan by COMO (Part of the Hotel's Site)¹ EdinburghPremier Inn Development at Goodman's Fields in Aldage UK UKPremier Inn Development in Dalston Edinburgh UK CardiffGrand Plaza Serviced Apartments UK UKabba Queen's Gate London Hotel UK UK UKPremier Inn London City Monument (Development) 187 London UKPremier Inn Waterloo London 200 UK UKBest Western Gatwick Moat House UK London 178Marriott Victoria & Albert Hotel London London UK UK UK 11,700,000Motel One near Piccadilly Station in Manchester (development) 19,700,000 Fawsley London London 138Bluestone National Park Resort 11,800,000 London UKDe Vere Grand Harbour Hotel Hurley 62,000 UK London UK 99,000 LondonPremier Inn Development in Winchester 215 14,400,000 361 UK London London CBRE Global InvestorsOakley Court Hotel London 66,000 Cordea Savills 179Park Inn by Radisson York City Centre 130 447 UK 105,000 44,700,000 35,500,000 London 58 London UK 46 32 Manchester Greater Manchester Pension Fund 21,500,000 250 462,500,000 17,100,000 London 208,000 219 98,000 50 111 UK 17,500,000 36,800,000 Standard Life 120,000 10,500,000 1,000,000 408 120 London 33 OCM Wembley Holdings Sarl 132,000 45,600,000 UK Constellation Hotels Holding Standard Life London 29,500,000 11,700,000 302,000 46,700,000 Hermes Pensions Management Ltd 330 UK 799,000 327,000 UK 157 63,200,000 10,000,000 182,000 184 40,500,000 Hand Picked Hotels UK Amazon Properties Ltd London Undisclosed Shiva Hotels 134,000 Apex Hotels 235,000 421,000 Jones Lang LaSalle UK 90 29,800,000 155,000 UK CBRE Global Investors 83,000 1,200,000 9,900,000 Galleon Hotels Manchester Undisclosed Private UK-Based Investor Undisclosed 198 Henderson Global Investors London Rightacres Property Co JV MEPC Ltd Winchester Overseas Investor Undisclosed 90,000 Cordial Hotels 10,500,000 Pembrokeshire 90 Group plc Cathedral Royal London Asset Management 63,000 Quintain Estates & Development LaSalle Investment Management 114,500,000 Southampton InterContinental Hotels Group UK York Cowell Group 126 117,000 Undisclosed 148 578,000 Jones Lang LaSalle 300 101 Berkeley Group Malaysian Federal Land Development Authority 7,500,000 534,000 234 Undisclosed P. Murtagh 173 Apex Hotels Simon Lowe Windsor Mazabi 11,600,000 Canada Life Investor Undisclosed 10,700,000 Undisclosed LPA Receivers (Colliers Interna Residential Land Private Danish Investor Standard Life 56,000,000 60,000 Westmont Hospitality Group Livia 28,200,000 Wawick Balfour Investments 200 39,000 106,000 Britannia Hotels Administrators to Dhillon Hotels 239,000 Powis Street Estates Ltd AXA Real Estate Investment Managers Management Team Buyout 163,000 Royal London Asset Management Worldwide CBG 21,100,000 118 Westmont Hospitality Group 106,000 Tritax LLP CBRE Global Investors 42,100,000 Undisclosed Zolfo Cooper Estates Reef 356,000 Marick Real Estate Lake Opportunities Ltd Finance Wales and Lloyds Banking Group De Vere Group Private Individual QMH Ltd KMPG Undisclosed Source: HVS London CHART 14: EUROPEAN SINGLE ASSET HOTEL TRANSACTIONS 2013 – CONTINUED

EUROPEAN HOTEL TRANSACTIONS 2013 | PAGE 11 About HVS

HVS HVS is the world’s leading consulting and services organization focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries. Established in 1980, the company performs 4,500+ assignments each year for hotel and real estate owners, operators, and developers worldwide. HVS About the Authors principals are regarded as the leading experts in their respective regions of the globe. Through a network of more than 30 offi ces Veronica Waldthausen is and 450 professionals, HVS provides an unparalleled range of an Associate with HVS complementary services for the hospitality industry. www.hvs.com London. She joined HVS in 2012 after completing her With offi ces in London since 1990, HVS London serves clients with Bachelor of Science in interests in the UK, Europe, the Middle East and Africa (EMEA). International Hospitality We have appraised some 4,000 hotels or projects in more than Management at École 50 countries in all major markets within the EMEA region for hôtelière de Lausanne, Switzerland. Since joining HVS, Veronica leading hotel companies, hotel owners and developers, investment has conducted hotel valuations and groups and banks. Known as one of the foremost providers feasibility studies in Slovakia, the Czech of hotel valuations and feasibility studies, and for our ability, Republic, Croatia, the Netherlands, experience and relationships throughout Europe, HVS London is Germany, Switzerland, the UK, France, on the valuation panels of numerous top international banks which Denmark, Luxembourg, Spain, Azerbaijan, fi nance hotels and portfolios. Ghana, Kenya and Senegal, and has written several market and industry related articles. Tel: +44 (0) 20 7878 7721 About HVS Hodges Ward Elliott [email protected]

HVS Hodges Ward Elliott is the hotel brokerage and investment Louise Fury is a Senior banking division of HVS. Operating within the European marketplace, Editor with HVS’s London HVS Hodges Ward Elliott acts on behalf of its clients in the sale offi ce. Louise holds a BA and fi nancing of hotels. Assignments include individual assets and (Hons) in English Language portfolios, with transactions having been successfully concluded in and Literature. She joined most major European markets. HVS as a Junior Editor in 2006 and since then has For further information about the services of the London offi ce, please edited and produced a contact Charles Human on +44 20 7878 7771 or [email protected]. number of assignments across Europe, the Middle East and Africa. Louise is also author Superior results through unrivalled hospitality of the HVS EMEA Hospitality Newsletter. intelligence. Everywhere. Tel: +44 (0) 20 7878 7750 [email protected]

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