Skip Ribbon Commands
Skip to main content

News Release

London – Moscow

Hotel Investment Market EMEA - Domestic Investment Dominates

Investment illiquidity past its low point


London – Moscow, 12th August 2009 - The rate of year on year decline in the hotel investment market softened in the second quarter to 49% of 2008 liquidity. This compared with about 80% in Q1 2009. Transactions were starting to tail off in Q2 2008 so we are now over the big percentage falls as we start to concentrate on what the future holds.
 
“This market is characterised by wide inconsistencies“ commented Mark Wynne Smith, CEO for Europe, Middle East and Africa at Jones Lang LaSalle Hotels “ but the common trends with such low levels of activity are that seller motivation and lender flexibility are the two key constituents to success. Motivated buyers do exist and they are pricing within a narrow range so the market will restart when sellers accept the best price that can be secured in today’s market.   There are two other common themes at the moment - firstly that conclusions drawn from one transaction will bear limited or no relation to the next deal and secondly that the gap between good and bad is widening”.
 
Spain was the most active market in the first half of 2009 with close to 200m Euro investment volume transacted and deals mainly outside of the primary city destinations. The United Kingdom, historically the market with the highest volume, came second with 5 deals amounting to approximately 180m Euro investment volume.
 
Looking at the source of investment in the first half of the year, domestic capital remained the dominant source, representing 44 % of the volume transacted. However, this shows a decline in domestic activity compared to Q1 2009 (more than 50%). However, hotel operators are still the dominant buyer group with 36% of the volume transacted in the first half of 2009.  “As hotel operators are the segment that actually need hotels, we expect to see more activity on this front in the next 6 months”.  
 
 
 
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2008, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on over $3.7bn worth of transactions globally relating to more than 120 assets. In addition, advisory and valuation services were provided on more than 600 assignments. The global team comprises over 220 hotel specialists, operating from 32 offices in 19 countries. The firm’s advice is supported by a dedicated global research team, which produced 87 publications in 2008 in addition to client research. Jones Lang LaSalle Hotels’ services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Their services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels’ clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL).
For further information, please visit our Web site, www.joneslanglasallehotels.com
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specialising in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.3 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $36 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008 and 2009 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.
For further information, please visit our Web site, http://www.joneslanglasalle.ru