Hotel investment volumes across Europe, the Middle East and Africa (EMEA) region rose 53 per cent in the first nine months of the year to €8.2 billion (Dh40.3 billion), a statement by property consultancy Jones Lang LaSalle (JLL) said.
“Hotel transaction volumes [in the Middle East] are increasing,” Chiheb Ben-Mahmoud, head of hotel advisory for the Middle East and Africa at JLL told Gulf News.
In Dubai, in particular, investors from the GCC (Gulf Cooperation Council) countries and other parts of the world are joining local investors to get a slice of the market, according to Ben-Mahmoud.
He said that international lenders “are starting to provide financing to new hotels [in Dubai]”.
According to the statement, single asset deals accounted for 54 per cent of overall transaction volumes, while portfolio deals accounted for the rest.
Single asset deals
Hotel operators were the most active sellers during the nine months ending in September, representing €2.3 billion worth of transactions.
Among the major single asset deals is the sale of the Grand Plaza Serviced Apartments in London to Malaysia’s Federal Land Development Authority, which fetched €116.6 million.
Meanwhile, in terms of portfolio deals, property group Gecina sold four holiday villages operated under the Club Méditerranée brand to Assurances du Crédit Mutuel for €280 million.
According to the statement, the UK, which continues to be the most liquid market in the EMEA region, saw investment volumes reach more than €2.6 billion, accounting for 32 per cent of total transaction volumes. France comes second, with €1.5 billion worth of investment volumes.
Gulf News
12 October
