Record quarter on hotel investment market scratches at all-time high 2016 –
Foreign investors struggle with large-volume transactions
Frankfurt (ots) – An extraordinary with 2.5 billion euros
transaction-rich
fourth quarter, the strongest in long-term statistics
on the
German hotel investment market in 2019 for a total volume * of
approx.4.86 billion
Euros, just barely missing the all-time high of the year
2016 (4.89
Billion euros). Compared to the previous year, the increase was 26 percent, the
5-year average was exceeded by around 20 percent when compared
with the
10-year average strikes a whopping plus of 93 percent
Beech. All in all
94 transactions (2018: 109) were made on the German hotel market
realized.
“Such a year-end rally was not yet over at the end of September
expect. The
predicted 3.5 to 4.0 billion euros were not least due
one
increased off-market activity for large-volume individual properties and
portfolio “
significantly exceeded, said Heidi Schmidtke, Managing Director of JLL
Hotels &
Hospitality Group in Germany. Schmidtke continues: “Overall
went in alone
five portfolio transactions in the last three months
three-digit
Millions over the stage and thus put the activity in
Portfolio segment in the past two years. “
Heidi Schmidtke gives another reason for the imposing
Hotel investment result: “The upcoming reform of the
Real estate transfer tax in
Share deals caused increased pressure on the part of
Seller that
Property to be sold before the end of the year. Although in mid-October
the
The planned reform will enter into force by six months to mid-2020
postponed
one or the other share deal was already at the end of 2019
aligned
and was then pulled through. “
In 2019, over 2.8 billion euros were invested in 77 individual transactions,
corresponding to a decline of around six percent in
Year. The
The transaction size averaged around EUR 36 million
(2018: around 32
Million Euro).
One of the largest single transactions in 2019 as a whole
everything in
fourth quarter of the off-market sale of the Hotel De Rome in Berlin
through the
Commerz Real at the Singapore GIC and Caleus State Fund, at which
JLL on
Advised the buyer. As part of this transaction
a new
Record in terms of price per room achieved in the German market.
The investment volume in the portfolio segment has fallen below the
Dash across
2018 more than doubled with over 2 billion euros – at only
one
Transaction more (17) than in the previous year (2018: EUR 850 million at 16
Transactions).
With an average volume of just under EUR 120 million each
transaction
significant growth (2018: EUR 52 million per investment)
listed
become.
The largest portfolio sales in 2019 included
pan-European portfolio
with 11 hotels, two of them in Cologne and one property in Düsseldorf,
Berlin,
Hannover, Leipzig and Kiel, which are part of an off-market deal from
Principal
Real Estate sold to AXA Real Estate for approx. EUR 545 million
has been. JLL was
advising AXA.
Foreign investors with doubling their capital investment in
2019
With 59 transactions, there are significantly more Germans than
foreign
Investors involved in the transaction – using
2.5 billion euros
(2018: 2.8 billion euros). With their commitment to large-volume
transactions
after all, seven transactions beyond the EUR 100 million (2018: 2
Transactions), but foreign investors come to mind
remarkable plus
of 108 percent compared to the previous year and reach around 2.3 billion
Euro. Four
Transactions with a total volume of EUR 490 million were made
of
Swedish investors realized, the second highest capital came from
French
Investors (around EUR 483 million) but twice as many
Transactions.
Almost 290 million euros flowed from Great Britain, divided into four
Transactions.
“The large share of foreign capital this year goes with
increased
Disposals of existing hotels in the portfolio segment and in
Premium documents
goes hand in hand, “explains Heidi Schmidtke.
Institutional investors were the most active with 51 transactions. she
translated
a total of over 3.2 billion euros, followed by
real estate companies
(EUR 810 million, 13 transactions), private equity and REITs (315
Million euros, 7
Transactions) and hotel operators (EUR 206 million, 9 transactions).
On
Private individuals and developers accounted for a volume of EUR 278 million
(at 14
Transactions).
Heidi Schmidtke concludes: “The triad of immense capital,
that after
Looking for investments, persistently attractive interest rate environment and one
Supply shortage in
the A cities with rising prices and a higher acceptance, in
secondary
and avoiding tertiary locations has the transaction volumes on
a very
high level driven. The property seems to have no alternative.
Be propagated
own specialized hotel funds of investment companies or
institutions
founded in which other investors want to participate. Or
new concepts
attract the interest of investors. Branded Residences, the
Further development of the concept of temporary living, as in
Micro-apartments or already in serviced apartments
will, could
another logical step to differentiate and
Investors through
possible value optimization lure. In cooperation between
Developers, operators
and hotel brands would create a new form of living, the upscale
Needs of
Apartment owners served. Objects of this type are either from
known
Brands operated themselves or they place their brand on an operator
to
Available. In Berlin and Frankfurt, this concept comes with the ‘Tower
apartments’
near the Ritz Carlton or the development in the projected
‘River Park
Tower ‘closest.
In sum, we are looking at the German hotel investment market in 2020
a good one
Path. Even if demand will remain robust in 2020 –
possibly still
once in the first half of the year pushed by the postponed
Real Estate Transfer Tax Act
For share deals: another record is from today’s perspective
Not
reachable. We are currently assuming that
transaction volume
to move towards the 5-year average of around four billion euros
can. “
* The Hotels & Hospitality Group of JLL, Germany, are taken into account
Individual transactions with an investment volume of at least 5
million Euro
as well as portfolio transactions with objects exclusively in
Germany. As well
German hotels included as part of
transboundary
Portfolio sales to be sold.
Press contact:
Dorothea Koch, Tel. +49 (0) 69 2003 1007, [email protected]
Further material: https://www.presseportal.de/pm/62984/4487538
OTS: Jones Lang LaSalle SE (JLL)
AXC0149 2020-01-09 / 12: 09
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